2666.T WACC - Weighted Average Cost of Capital
The WACC of Autowave Co Ltd (2666.T) is 5.6%.
| Range | Selected | |
| Cost of equity | 6.4% - 9.9% | 8.15% |
| Tax rate | 33.3% - 36.8% | 35.05% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.7% - 6.6% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.81 | 1.05 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 9.9% |
| Tax rate | 33.3% | 36.8% |
| Debt/Equity ratio | 0.86 | 0.86 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.7% | 6.6% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2666.T | Autowave Co Ltd | 0.76 | 0.49 | 0.33 |
| 2754.T | Tokatsu Holdings Co Ltd | 0.22 | 0.61 | 0.54 |
| 3011.T | Banners Co Ltd | 1.16 | 0.62 | 0.36 |
| 3189.T | ANAP Inc | 0.24 | 1.04 | 0.9 |
| 3352.T | Buffalo Co Ltd | 0.22 | 0.37 | 0.32 |
| 7462.T | Daiya Tsusho Co Ltd | 0.73 | 0.19 | 0.13 |
| 7605.T | Fuji Corp (Miyagi) | 0.02 | 0.74 | 0.73 |
| 8291.T | Nissan Tokyo Sales Holdings Co Ltd | 0.18 | 0.8 | 0.72 |
| 8298.T | Family Inc | 0.89 | 1.12 | 0.71 |
| 9856.T | KU Holdings Co Ltd | 0.31 | 0.82 | 0.68 |
| Low | High | |
| Unlevered beta | 0.47 | 0.69 |
| Relevered beta | 0.72 | 1.07 |
| Adjusted relevered beta | 0.81 | 1.05 |
2666.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 2666.T:
cost_of_equity (8.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.81) + 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.