3143.T WACC - Weighted Average Cost of Capital
The WACC of O' will Corp (3143.T) is 5.7%.
| Range | Selected | |
| Cost of equity | 5.1% - 8.7% | 6.9% |
| Tax rate | 31.1% - 31.9% | 31.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 7.0% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.6 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 8.7% |
| Tax rate | 31.1% | 31.9% |
| Debt/Equity ratio | 0.42 | 0.42 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 7.0% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3143.T | O' will Corp | 0.42 | 0.7 | 0.54 |
| 1175.HK | Fresh Express Delivery Holdings Group Co Ltd | 1.11 | 1.77 | 1.01 |
| 2708.T | Kuze Co Ltd | 0.61 | 1.18 | 0.83 |
| 2750.T | S.Ishimitsu & Co Ltd | 1.51 | 0.36 | 0.18 |
| 3004.T | Shinyei Kaisha | 1.88 | 0.59 | 0.26 |
| 7443.T | Yokohama Gyorui Co Ltd | 0.14 | 0.01 | 0.01 |
| 7451.T | Mitsubishi Shokuhin Co Ltd | 0.02 | 0.81 | 0.8 |
| 8045.T | Yokohama Maruuo Co Ltd | 0.08 | 0.35 | 0.34 |
| 8142.T | Toho Co Ltd (Hyogo) | 0.57 | 1.15 | 0.83 |
| 9996.T | Satoh&Co Ltd | 0.04 | 0.29 | 0.28 |
| Low | High | |
| Unlevered beta | 0.31 | 0.64 |
| Relevered beta | 0.4 | 0.84 |
| Adjusted relevered beta | 0.6 | 0.89 |
3143.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 3143.T:
cost_of_equity (6.90%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.6) + 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.