3091.T WACC - Weighted Average Cost of Capital
The WACC of Bronco Billy Co Ltd (3091.T) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.3% | 6.25% |
| Tax rate | 32.1% - 33.2% | 32.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.2% - 7.3% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.46 | 0.55 |
| Additional risk adjustments | 1.0% | 1.5% |
| Cost of equity | 5.2% | 7.3% |
| Tax rate | 32.1% | 33.2% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.2% | 7.3% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3091.T | Bronco Billy Co Ltd | 0.01 | 0.55 | 0.54 |
| 2268.T | B-R 31 Ice Cream Co Ltd | 0.06 | 0.2 | 0.19 |
| 2705.T | Ootoya Holdings Co Ltd | 0.04 | 0.2 | 0.19 |
| 3075.T | Choushimaru Co Ltd | 0.02 | 0.25 | 0.25 |
| 3221.T | Yossix Co Ltd | 1.04 | 0.54 | 0.32 |
| 6082.T | Ride On Express Holdings Co Ltd | 0.21 | 0.22 | 0.19 |
| 7562.T | Anrakutei Co Ltd | 0.64 | 0.13 | 0.09 |
| 7621.T | Ukai Co Ltd | 0.15 | 0.15 | 0.14 |
| 9279.T | GIFT Inc | 0.06 | 0.61 | 0.58 |
| 9900.T | Sagami Holdings Corp | 0.05 | 0.45 | 0.44 |
| Low | High | |
| Unlevered beta | 0.19 | 0.28 |
| Relevered beta | 0.19 | 0.33 |
| Adjusted relevered beta | 0.46 | 0.55 |
3091.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 3091.T:
cost_of_equity (6.25%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.46) + risk_adjustments (1.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.