2780.T WACC - Weighted Average Cost of Capital
The WACC of Komehyo Holdings Co Ltd (2780.T) is 4.0%.
| Range | Selected | |
| Cost of equity | 4.0% - 7.2% | 5.6% |
| Tax rate | 29.9% - 30.7% | 30.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 3.3% - 4.8% | 4.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.43 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.0% | 7.2% |
| Tax rate | 29.9% | 30.7% |
| Debt/Equity ratio | 1.47 | 1.47 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 3.3% | 4.8% |
| Selected WACC | 4.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2780.T | Komehyo Holdings Co Ltd | 1.47 | 1.1 | 0.54 |
| 2769.T | Village Vanguard Co Ltd | 1.2 | 0.12 | 0.06 |
| 3174.T | Happiness and D Co Ltd | 2.35 | 0.15 | 0.06 |
| 7455.T | Paris Miki Holdings Inc | 0.12 | 0.58 | 0.53 |
| 7506.T | House of Rose Co Ltd | 0.01 | 0.08 | 0.08 |
| 7514.T | Himaraya Co Ltd | 0.49 | 0.08 | 0.06 |
| 7640.T | Top Culture Co Ltd | 4.11 | 0.97 | 0.25 |
| 8230.T | Hasegawa Co Ltd | 0.63 | 0.03 | 0.02 |
| 9270.T | Valuence Holdings Inc | 1.33 | 0.63 | 0.32 |
| 9278.T | Bookoff Group Holdings Ltd | 0.75 | 0.4 | 0.26 |
| Low | High | |
| Unlevered beta | 0.07 | 0.25 |
| Relevered beta | 0.15 | 0.52 |
| Adjusted relevered beta | 0.43 | 0.68 |
2780.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 2780.T:
cost_of_equity (5.60%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.43) + 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.