3242.T WACC - Weighted Average Cost of Capital
The WACC of Urbanet Corporation Co Ltd (3242.T) is 4.1%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.6% | 6.4% |
| Tax rate | 31.6% - 31.6% | 31.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 3.6% - 4.7% | 4.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.62 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.6% |
| Tax rate | 31.6% | 31.6% |
| Debt/Equity ratio | 1.83 | 1.83 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 3.6% | 4.7% |
| Selected WACC | 4.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3242.T | Urbanet Corporation Co Ltd | 1.83 | 0.27 | 0.12 |
| 3238.T | Central General Development Co Ltd | 7.34 | 0.39 | 0.06 |
| 3241.T | Will Co Ltd | 1.63 | 0.4 | 0.19 |
| 3264.T | Ascot Corp | 1.38 | 0.6 | 0.31 |
| 3475.T | Good Com Asset Co Ltd | 0.58 | 0.28 | 0.2 |
| 3489.T | FaithNetwork Co Ltd | 0.75 | 0.88 | 0.58 |
| 5280.T | Yoshicon Co Ltd | 0.49 | 0.63 | 0.47 |
| 8903.T | Sunwood Corp | 3.63 | 0.06 | 0.02 |
| 8908.T | Mainichi Comnet Co Ltd | 0.92 | 0.38 | 0.23 |
| 8927.T | Meiho Enterprise Co Ltd | 1.57 | 0.98 | 0.47 |
| Low | High | |
| Unlevered beta | 0.19 | 0.26 |
| Relevered beta | 0.43 | 0.6 |
| Adjusted relevered beta | 0.62 | 0.73 |
3242.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 3242.T:
cost_of_equity (6.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.62) + 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.