3011.T
Banners Co Ltd
Price:  
137.00 
JPY
Volume:  
8,600.00
Japan | Specialty Retail
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3011.T WACC - Weighted Average Cost of Capital

The WACC of Banners Co Ltd (3011.T) is 4.7%.

The Cost of Equity of Banners Co Ltd (3011.T) is 6.20%.
The Cost of Debt of Banners Co Ltd (3011.T) is 4.25%.

Range Selected
Cost of equity 4.70% - 7.70% 6.20%
Tax rate 9.50% - 12.90% 11.20%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.0% - 5.4% 4.7%
WACC

3011.T WACC calculation

Category Low High
Long-term bond rate 1.4% 1.9%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.53 0.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 4.70% 7.70%
Tax rate 9.50% 12.90%
Debt/Equity ratio 1.53 1.53
Cost of debt 4.00% 4.50%
After-tax WACC 4.0% 5.4%
Selected WACC 4.7%

3011.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 3011.T:

cost_of_equity (6.20%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.53) + 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.