3232.T WACC - Weighted Average Cost of Capital
The WACC of Mie Kotsu Group Holdings Inc (3232.T) is 4.7%.
| Range | Selected | |
| Cost of equity | 5.7% - 9.2% | 7.45% |
| Tax rate | 33.1% - 35.8% | 34.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 3.9% - 5.4% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.7 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 9.2% |
| Tax rate | 33.1% | 35.8% |
| Debt/Equity ratio | 1.51 | 1.51 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 3.9% | 5.4% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3232.T | Mie Kotsu Group Holdings Inc | 1.51 | 0.47 | 0.23 |
| 242.HK | Shun Tak Holdings Ltd | 9.36 | 0.8 | 0.11 |
| 3001.T | Katakura Industries Co Ltd | 0.13 | 0.73 | 0.67 |
| 3167.T | Tokai Holdings Corp | 0.47 | 0.29 | 0.22 |
| 5856.T | Life Intelligent Enterprise Holdings Co Ltd | 0.37 | 0.74 | 0.6 |
| 7932.T | Nippi Inc | 0.73 | 0.46 | 0.31 |
| 9637.T | OS Co Ltd | 0.72 | -0.69 | -0.47 |
| ARAD.TA | Arad Investment & Industrial Development Ltd | 0.87 | 1.49 | 0.95 |
| REE.VN | Refrigeration Electrical Engineering Corp | 0.32 | 0.91 | 0.76 |
| ZUARIGLOB.NS | Zuari Global Ltd | 5.15 | 1.7 | 0.39 |
| Low | High | |
| Unlevered beta | 0.28 | 0.47 |
| Relevered beta | 0.55 | 0.94 |
| Adjusted relevered beta | 0.7 | 0.96 |
3232.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 3232.T:
cost_of_equity (7.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.7) + 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.