3185.T
Dream Vision Co Ltd
Price:  
139 
JPY
Volume:  
111,400
Japan | Internet & Direct Marketing Retail

3185.T WACC - Weighted Average Cost of Capital

The WACC of Dream Vision Co Ltd (3185.T) is 6.6%.

The Cost of Equity of Dream Vision Co Ltd (3185.T) is 7.35%.
The Cost of Debt of Dream Vision Co Ltd (3185.T) is 5.5%.

RangeSelected
Cost of equity5.9% - 8.8%7.35%
Tax rate1.8% - 2.7%2.25%
Cost of debt4.0% - 7.0%5.5%
WACC5.2% - 8.1%6.6%
WACC

3185.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.740.9
Additional risk adjustments0.0%0.5%
Cost of equity5.9%8.8%
Tax rate1.8%2.7%
Debt/Equity ratio
0.610.61
Cost of debt4.0%7.0%
After-tax WACC5.2%8.1%
Selected WACC6.6%

3185.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 3185.T:

cost_of_equity (7.35%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.74) + 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.