3280.T
STrust Co Ltd
Price:  
1,210.00 
JPY
Volume:  
22,400.00
Japan | Real Estate Management & Development
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3280.T WACC - Weighted Average Cost of Capital

The WACC of STrust Co Ltd (3280.T) is 4.2%.

The Cost of Equity of STrust Co Ltd (3280.T) is 8.00%.
The Cost of Debt of STrust Co Ltd (3280.T) is 4.25%.

Range Selected
Cost of equity 6.20% - 9.80% 8.00%
Tax rate 31.90% - 32.30% 32.10%
Cost of debt 4.00% - 4.50% 4.25%
WACC 3.6% - 4.8% 4.2%
WACC

3280.T WACC calculation

Category Low High
Long-term bond rate 1.4% 1.9%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.79 1.04
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.20% 9.80%
Tax rate 31.90% 32.30%
Debt/Equity ratio 2.88 2.88
Cost of debt 4.00% 4.50%
After-tax WACC 3.6% 4.8%
Selected WACC 4.2%

3280.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 3280.T:

cost_of_equity (8.00%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.79) + 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.