The WACC of Fujisan Magazine Service Co Ltd (3138.T) is 7.9%.
Range | Selected | |
Cost of equity | 6.8% - 10.9% | 8.85% |
Tax rate | 31.5% - 32.3% | 31.9% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 6.2% - 9.7% | 7.9% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.88 | 1.19 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.8% | 10.9% |
Tax rate | 31.5% | 32.3% |
Debt/Equity ratio | 0.18 | 0.18 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 6.2% | 9.7% |
Selected WACC | 7.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
3138.T | Fujisan Magazine Service Co Ltd | 0.18 | 0.29 | 0.26 |
2656.T | Vector Inc | 0 | 1.4 | 1.4 |
3137.T | Fundely Co Ltd | 1.37 | 1.07 | 0.56 |
3195.T | Generation Pass Co Ltd | 0.3 | 0.08 | 0.06 |
3556.T | RenetJapanGroup Inc | 0.72 | 1.26 | 0.85 |
3660.T | Istyle Inc | 0.17 | 1.6 | 1.44 |
3807.T | Fisco Ltd | 0 | 1.4 | 1.4 |
3840.T | Path Corp | 0.04 | 1.16 | 1.13 |
3995.T | Skiyaki Inc | 0.04 | 0.01 | 0.01 |
SASTASUNDR.NS | Sastasundar Ventures Ltd | 0 | 1.16 | 1.16 |
Low | High | |
Unlevered beta | 0.73 | 1.14 |
Relevered beta | 0.82 | 1.28 |
Adjusted relevered beta | 0.88 | 1.19 |
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 3138.T:
cost_of_equity (8.85%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.88) + 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.