3236.T WACC - Weighted Average Cost of Capital
The WACC of Properst Co Ltd (3236.T) is 5.5%.
| Range | Selected | |
| Cost of equity | 10.8% - 15.7% | 13.25% |
| Tax rate | 28.2% - 30.1% | 29.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.8% - 6.2% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.53 | 1.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.8% | 15.7% |
| Tax rate | 28.2% | 30.1% |
| Debt/Equity ratio | 3.06 | 3.06 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.8% | 6.2% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3236.T | Properst Co Ltd | 3.06 | 0.74 | 0.24 |
| 2980.T | SRE Holdings Corp | 0.19 | 1.06 | 0.94 |
| 3245.T | Dear Life Co Ltd | 0.37 | 0.84 | 0.67 |
| 3277.T | Sansei Landic Co Ltd | 1.92 | 0.44 | 0.19 |
| 3299.T | Mugen Estate Co Ltd | 0.97 | 1.21 | 0.72 |
| 3486.T | Global Link Management Inc | 0.65 | 1.08 | 0.75 |
| 3497.T | LeTech Corp | 1.02 | 0.71 | 0.42 |
| 8909.T | Shinoken Group Co Ltd | 0.67 | 1.15 | 0.78 |
| 8938.T | Glome Holdings Inc | 0.01 | 1.18 | 1.17 |
| 9633.T | Tokyo Theatres Co Inc | 0.72 | 0.14 | 0.09 |
| Low | High | |
| Unlevered beta | 0.57 | 0.73 |
| Relevered beta | 1.79 | 2.3 |
| Adjusted relevered beta | 1.53 | 1.87 |
3236.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 3236.T:
cost_of_equity (13.25%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.53) + 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.