3073.T
DD Holdings Co Ltd
Price:  
1,448 
JPY
Volume:  
39,400
Japan | Hotels, Restaurants & Leisure

3073.T WACC - Weighted Average Cost of Capital

The WACC of DD Holdings Co Ltd (3073.T) is 5.8%.

The Cost of Equity of DD Holdings Co Ltd (3073.T) is 7.55%.
The Cost of Debt of DD Holdings Co Ltd (3073.T) is 4.25%.

RangeSelected
Cost of equity6.2% - 8.9%7.55%
Tax rate24.8% - 32.3%28.55%
Cost of debt4.0% - 4.5%4.25%
WACC5.0% - 6.6%5.8%
WACC

3073.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.790.91
Additional risk adjustments0.0%0.5%
Cost of equity6.2%8.9%
Tax rate24.8%32.3%
Debt/Equity ratio
0.620.62
Cost of debt4.0%4.5%
After-tax WACC5.0%6.6%
Selected WACC5.8%

3073.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 3073.T:

cost_of_equity (7.55%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.79) + 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.