3292.T
Aeon Reit Investment Corp
Price:  
127,100 
JPY
Volume:  
5,342
Japan | Equity Real Estate Investment Trusts (REITs)

3292.T WACC - Weighted Average Cost of Capital

The WACC of Aeon Reit Investment Corp (3292.T) is 4.8%.

The Cost of Equity of Aeon Reit Investment Corp (3292.T) is 5.25%.
The Cost of Debt of Aeon Reit Investment Corp (3292.T) is 4.25%.

RangeSelected
Cost of equity4.4% - 6.1%5.25%
Tax rate0.0% - 0.0%0%
Cost of debt4.0% - 4.5%4.25%
WACC4.2% - 5.5%4.8%
WACC

3292.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.490.53
Additional risk adjustments0.0%0.5%
Cost of equity4.4%6.1%
Tax rate0.0%0.0%
Debt/Equity ratio
0.710.71
Cost of debt4.0%4.5%
After-tax WACC4.2%5.5%
Selected WACC4.8%

3292.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 3292.T:

cost_of_equity (5.25%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.49) + 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.