2983.T WACC - Weighted Average Cost of Capital

The WACC of Arr Planner Co Ltd (2983.T) is 4.8%.

The Cost of Equity of Arr Planner Co Ltd (2983.T) is 8.80%.

The Cost of Debt of Arr Planner Co Ltd (2983.T) is 4.25%.

	Range	Selected
Cost of equity	6.40% - 11.20%	8.80%
Tax rate	30.60% - 31.10%	30.85%
Cost of debt	4.00% - 4.50%	4.25%
WACC	3.9% - 5.6%	4.8%

WACC

2983.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.82	1.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.40%	11.20%

Tax rate	30.60%	31.10%
Debt/Equity ratio	2.21	2.21
Cost of debt	4.00%	4.50%

After-tax WACC	3.9%	5.6%


Selected WACC	4.8%

2983.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 2983.T:

cost_of_equity (8.80%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.82) + 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.