2791.T WACC - Weighted Average Cost of Capital
The WACC of Daikokutenbussan Co Ltd (2791.T) is 5.8%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.2% | 6.15% |
| Tax rate | 35.6% - 36.1% | 35.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.8% - 6.7% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.61 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 7.2% |
| Tax rate | 35.6% | 36.1% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.8% | 6.7% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2791.T | Daikokutenbussan Co Ltd | 0.13 | 0.1 | 0.09 |
| 2659.T | San-A Co Ltd | 0 | 0.43 | 0.43 |
| 2742.T | Halows Co Ltd | 0.11 | 0.56 | 0.52 |
| 7508.T | G-7 Holdings Inc | 0.24 | 0.65 | 0.57 |
| 7512.T | Aeon Hokkaido Corp | 0.38 | 0.19 | 0.16 |
| 7520.T | Eco's Co Ltd | 0.43 | 0.67 | 0.52 |
| 8167.T | Retail Partners Co Ltd | 0.21 | 0.63 | 0.56 |
| 9823.T | Mammy Mart Corp | 0.24 | 0.51 | 0.44 |
| 9946.T | Ministop Co Ltd | 0.01 | 0.33 | 0.33 |
| 9974.T | Belc Co Ltd | 0.24 | 0.29 | 0.25 |
| Low | High | |
| Unlevered beta | 0.39 | 0.47 |
| Relevered beta | 0.42 | 0.51 |
| Adjusted relevered beta | 0.61 | 0.67 |
2791.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 2791.T:
cost_of_equity (6.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.61) + 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.