2882.T WACC - Weighted Average Cost of Capital
The WACC of Eat&Holdings Co Ltd (2882.T) is 5.3%.
| Range | Selected | |
| Cost of equity | 4.5% - 7.5% | 6% |
| Tax rate | 27.7% - 30.6% | 29.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.1% - 6.5% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.51 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.5% | 7.5% |
| Tax rate | 27.7% | 30.6% |
| Debt/Equity ratio | 0.32 | 0.32 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.1% | 6.5% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2882.T | Eat&Holdings Co Ltd | 0.32 | 0.24 | 0.2 |
| 2694.T | G.taste Co Ltd | 0.36 | 0.27 | 0.21 |
| 2705.T | Ootoya Holdings Co Ltd | 0.04 | 0.18 | 0.18 |
| 2753.T | Amiyaki Tei Co Ltd | 0.04 | 0.57 | 0.55 |
| 3053.T | Pepper Food Service Co Ltd | 0 | 1.67 | 1.67 |
| 3068.T | WDI Corp | 0.49 | 0.29 | 0.22 |
| 3193.T | Torikizoku Holdings Co Ltd | 0.09 | 0.98 | 0.92 |
| 3196.T | HotLand Co Ltd | 0.18 | 0.48 | 0.43 |
| 3561.T | Chikaranomoto Holdings Co Ltd | 0.06 | 0.9 | 0.86 |
| 7604.T | Umenohana Co Ltd | 2.29 | 0.09 | 0.03 |
| Low | High | |
| Unlevered beta | 0.22 | 0.48 |
| Relevered beta | 0.27 | 0.58 |
| Adjusted relevered beta | 0.51 | 0.72 |
2882.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 2882.T:
cost_of_equity (6.00%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.51) + 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.