The WACC of C'sMEN Co Ltd (3083.T) is 6.9%.
Range | Selected | |
Cost of equity | 5.4% - 8.9% | 7.15% |
Tax rate | 10.9% - 13.4% | 12.15% |
Cost of debt | 5.2% - 7.0% | 6.1% |
WACC | 5.3% - 8.5% | 6.9% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.41 | 0.7 |
Additional risk adjustments | 1.5% | 2.0% |
Cost of equity | 5.4% | 8.9% |
Tax rate | 10.9% | 13.4% |
Debt/Equity ratio | 0.17 | 0.17 |
Cost of debt | 5.2% | 7.0% |
After-tax WACC | 5.3% | 8.5% |
Selected WACC | 6.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
3083.T | C'sMEN Co Ltd | 0.17 | 0.96 | 0.83 |
2668.T | Tabio Corp | 0.12 | 0.12 | 0.11 |
2726.T | PAL Group Holdings Co Ltd | 0.04 | -0.48 | -0.46 |
3189.T | ANAP Inc | 0.17 | 1.04 | 0.9 |
3415.T | Tokyo Base Co Ltd | 0.28 | 0.95 | 0.76 |
7416.T | Haruyama Holdings Inc | 0.81 | 0.17 | 0.1 |
7545.T | Nishimatsuya Chain Co Ltd | 0.01 | 0.11 | 0.11 |
7564.T | Workman Co Ltd | 0 | -0.2 | -0.2 |
7615.T | Kyoto Kimono Yuzen Co Ltd | 0.44 | 0.66 | 0.47 |
8166.T | Taka-Q Co Ltd | 0.75 | 0.84 | 0.51 |
Low | High | |
Unlevered beta | 0.11 | 0.49 |
Relevered beta | 0.12 | 0.55 |
Adjusted relevered beta | 0.41 | 0.7 |
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 3083.T:
cost_of_equity (7.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.41) + risk_adjustments (1.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.