2776.T WACC - Weighted Average Cost of Capital
The WACC of Shinto Holdings Inc (2776.T) is 5.6%.
| Range | Selected | |
| Cost of equity | 4.2% - 7.2% | 5.7% |
| Tax rate | 1.9% - 8.8% | 5.35% |
| Cost of debt | 5.0% - 6.6% | 5.8% |
| WACC | 4.4% - 6.7% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.45 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.2% | 7.2% |
| Tax rate | 1.9% | 8.8% |
| Debt/Equity ratio | 0.61 | 0.61 |
| Cost of debt | 5.0% | 6.6% |
| After-tax WACC | 4.4% | 6.7% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2776.T | Shinto Holdings Inc | 0.61 | 0.34 | 0.22 |
| 4935.T | Liberta Co Ltd | 0.28 | 1.54 | 1.21 |
| 7422.T | Toho Lamac Co Ltd | 0.4 | 0.66 | 0.47 |
| 7477.T | Muraki Corp | 0 | 0.62 | 0.62 |
| 7487.T | Ozu Corp | 0.18 | 0.09 | 0.08 |
| 7519.T | Goyo Intex Co Ltd | 3.15 | 2.05 | 0.51 |
| 7555.T | Ota Floriculture Auction Co Ltd | 0.18 | 0.07 | 0.06 |
| 8025.T | Tsukamoto Corporation Co Ltd | 1.46 | 0.17 | 0.07 |
| 8115.T | Moonbat Co Ltd | 0.44 | 0.2 | 0.14 |
| 9852.T | CB Group Management Co Ltd | 0.2 | 0.07 | 0.06 |
| Low | High | |
| Unlevered beta | 0.12 | 0.32 |
| Relevered beta | 0.18 | 0.51 |
| Adjusted relevered beta | 0.45 | 0.67 |
2776.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 2776.T:
cost_of_equity (5.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.45) + 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.