3191.T WACC - Weighted Average Cost of Capital
The WACC of Joyful Honda Co Ltd (3191.T) is 5.5%.
| Range | Selected | |
| Cost of equity | 4.4% - 6.9% | 5.65% |
| Tax rate | 26.9% - 30.1% | 28.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.3% - 6.6% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.5 | 0.63 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.4% | 6.9% |
| Tax rate | 26.9% | 30.1% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.3% | 6.6% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3191.T | Joyful Honda Co Ltd | 0.07 | 0.24 | 0.23 |
| 3546.T | Alleanza Holdings Co Ltd | 0.88 | 0.4 | 0.25 |
| 7450.T | Sunday Co Ltd | 1.19 | 0.16 | 0.09 |
| 8168.T | Keiyo Co Ltd | 0.19 | -0.68 | -0.6 |
| 8185.T | Chiyoda Co Ltd | 0.02 | 0.7 | 0.69 |
| 8202.T | Laox Co Ltd | 0.21 | 0.86 | 0.75 |
| 9835.T | Juntendo Co Ltd | 3.35 | 0.18 | 0.05 |
| 9842.T | Arcland Sakamoto Co Ltd | 1.1 | 0.45 | 0.26 |
| 9856.T | KU Holdings Co Ltd | 0.27 | 0.81 | 0.68 |
| ACES.JK | Ace Hardware Indonesia Tbk PT | 0.09 | 0.86 | 0.81 |
| Low | High | |
| Unlevered beta | 0.24 | 0.43 |
| Relevered beta | 0.25 | 0.45 |
| Adjusted relevered beta | 0.5 | 0.63 |
3191.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 3191.T:
cost_of_equity (5.65%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.5) + 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.