3083.T WACC - Weighted Average Cost of Capital

The WACC of C'sMEN Co Ltd (3083.T) is 6.9%.

The Cost of Equity of C'sMEN Co Ltd (3083.T) is 7.15%.

The Cost of Debt of C'sMEN Co Ltd (3083.T) is 6.25%.

	Range	Selected
Cost of equity	5.40% - 8.90%	7.15%
Tax rate	10.90% - 13.40%	12.15%
Cost of debt	5.50% - 7.00%	6.25%
WACC	5.3% - 8.5%	6.9%

WACC

3083.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.41	0.7

Additional risk adjustments	1.5%	2.0%
Cost of equity	5.40%	8.90%

Tax rate	10.90%	13.40%
Debt/Equity ratio	0.17	0.17
Cost of debt	5.50%	7.00%

After-tax WACC	5.3%	8.5%


Selected WACC	6.9%

3083.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 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.