3138.T
Fujisan Magazine Service Co Ltd
Price:  
913 
JPY
Volume:  
1,800
Japan | Internet & Direct Marketing Retail

3138.T WACC - Weighted Average Cost of Capital

The WACC of Fujisan Magazine Service Co Ltd (3138.T) is 7.9%.

The Cost of Equity of Fujisan Magazine Service Co Ltd (3138.T) is 8.85%.
The Cost of Debt of Fujisan Magazine Service Co Ltd (3138.T) is 4.25%.

RangeSelected
Cost of equity6.8% - 10.9%8.85%
Tax rate31.5% - 32.3%31.9%
Cost of debt4.0% - 4.5%4.25%
WACC6.2% - 9.7%7.9%
WACC

3138.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.881.19
Additional risk adjustments0.0%0.5%
Cost of equity6.8%10.9%
Tax rate31.5%32.3%
Debt/Equity ratio
0.180.18
Cost of debt4.0%4.5%
After-tax WACC6.2%9.7%
Selected WACC7.9%

3138.T WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.731.14
Relevered beta0.821.28
Adjusted relevered beta0.881.19

3138.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 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.