2769.T WACC - Weighted Average Cost of Capital
The WACC of Village Vanguard Co Ltd (2769.T) is 6.7%.
| Range | Selected | |
| Cost of equity | 8.2% - 11.8% | 10% |
| Tax rate | 27.7% - 30.6% | 29.15% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.3% - 8.0% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.1 | 1.32 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 11.8% |
| Tax rate | 27.7% | 30.6% |
| Debt/Equity ratio | 1.2 | 1.2 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.3% | 8.0% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2769.T | Village Vanguard Co Ltd | 1.2 | 0.12 | 0.06 |
| 2780.T | Komehyo Holdings Co Ltd | 0.89 | 1.12 | 0.69 |
| 3046.T | Jins Holdings Inc | 0.07 | 0.55 | 0.53 |
| 3779.T | J Escom Holdings Inc | 0.22 | 0.92 | 0.8 |
| 7610.T | Tay Two Co Ltd | 0.38 | 1.05 | 0.83 |
| 7640.T | Top Culture Co Ltd | 4.11 | 0.96 | 0.25 |
| 8136.T | Sanrio Co Ltd | 0.03 | 0.95 | 0.93 |
| 9263.T | Visionaryholdings Co Ltd | 0.7 | 1.38 | 0.93 |
| 9966.T | Fujikyu Corp | 0.01 | 0.97 | 0.96 |
| 9978.T | Bunkyodo Group Holdings Co Ltd | 2.08 | 0.82 | 0.33 |
| Low | High | |
| Unlevered beta | 0.63 | 0.81 |
| Relevered beta | 1.15 | 1.48 |
| Adjusted relevered beta | 1.1 | 1.32 |
2769.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 2769.T:
cost_of_equity (10.00%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.1) + 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.