2978.T WACC - Weighted Average Cost of Capital
The WACC of Tsukuruba Inc (2978.T) is 6.5%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.1% | 7.1% |
| Tax rate | 1.9% - 3.5% | 2.7% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.7% - 7.4% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.77 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.1% |
| Tax rate | 1.9% | 3.5% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.7% | 7.4% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2978.T | Tsukuruba Inc | 0.23 | 0.24 | 0.19 |
| 3645.T | Medical Net Inc | 0.3 | 0.61 | 0.47 |
| 3646.T | Ekitan & Co Ltd | 0.18 | 0.59 | 0.5 |
| 3691.T | Realworld Inc | 0.23 | 0.73 | 0.6 |
| 3979.T | Uluru Co Ltd | 0.02 | 0.6 | 0.59 |
| 4014.T | Karadanote Inc | 0.08 | 0.77 | 0.72 |
| 4387.T | ZUU Co Ltd | 0.08 | 0.52 | 0.48 |
| 4445.T | Living Technologies Inc | 0.33 | 0.74 | 0.56 |
| 6048.T | DesignOne Japan Inc | 0.04 | 1.34 | 1.29 |
| 7082.T | Jimoty Inc | 0.01 | 0.56 | 0.55 |
| Low | High | |
| Unlevered beta | 0.53 | 0.57 |
| Relevered beta | 0.66 | 0.7 |
| Adjusted relevered beta | 0.77 | 0.8 |
2978.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 2978.T:
cost_of_equity (7.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.77) + 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.