2533.T
Oenon Holdings Inc
Price:  
595 
JPY
Volume:  
86,700
Japan | Beverages

2533.T WACC - Weighted Average Cost of Capital

The WACC of Oenon Holdings Inc (2533.T) is 5.6%.

The Cost of Equity of Oenon Holdings Inc (2533.T) is 6%.
The Cost of Debt of Oenon Holdings Inc (2533.T) is 4.25%.

RangeSelected
Cost of equity4.6% - 7.4%6%
Tax rate29.8% - 37.7%33.75%
Cost of debt4.0% - 4.5%4.25%
WACC4.4% - 6.8%5.6%
WACC

2533.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.520.71
Additional risk adjustments0.0%0.5%
Cost of equity4.6%7.4%
Tax rate29.8%37.7%
Debt/Equity ratio
0.150.15
Cost of debt4.0%4.5%
After-tax WACC4.4%6.8%
Selected WACC5.6%

2533.T's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 2533.T:

cost_of_equity (6.00%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.52) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.