3059.T WACC - Weighted Average Cost of Capital
The WACC of Hiraki Co Ltd (3059.T) is 4.4%.
| Range | Selected | |
| Cost of equity | 4.8% - 7.1% | 5.95% |
| Tax rate | 33.7% - 36.9% | 35.3% |
| Cost of debt | 4.0% - 6.6% | 5.3% |
| WACC | 3.5% - 5.3% | 4.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.56 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 7.1% |
| Tax rate | 33.7% | 36.9% |
| Debt/Equity ratio | 1.54 | 1.54 |
| Cost of debt | 4.0% | 6.6% |
| After-tax WACC | 3.5% | 5.3% |
| Selected WACC | 4.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3059.T | Hiraki Co Ltd | 1.54 | 0.03 | 0.01 |
| 2722.T | I K Co Ltd | 0.52 | 0.64 | 0.48 |
| 3135.T | MarketEnterprise Co Ltd | 0.28 | 1.18 | 0.99 |
| 3172.T | Tea Life Co Ltd | 0.21 | 0.36 | 0.32 |
| 3185.T | Dream Vision Co Ltd | 0.61 | 0.04 | 0.03 |
| 3187.T | Sanwa Co Ltd | 0.45 | 0.56 | 0.43 |
| 3192.T | Shirohato Co Ltd | 1.76 | 0.43 | 0.2 |
| 3328.T | Beenos Inc | 0.08 | 0.01 | 0.01 |
| 3396.T | Felissimo Corp | 0 | 0.12 | 0.12 |
| 9959.T | Aseed Holdings Co Ltd | 0.72 | 0.29 | 0.2 |
| Low | High | |
| Unlevered beta | 0.17 | 0.25 |
| Relevered beta | 0.34 | 0.49 |
| Adjusted relevered beta | 0.56 | 0.66 |
3059.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 3059.T:
cost_of_equity (5.95%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.56) + 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.