The WACC of Aeon Reit Investment Corp (3292.T) is 4.8%.
Range | Selected | |
Cost of equity | 4.4% - 6.1% | 5.25% |
Tax rate | 0.0% - 0.0% | 0% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 4.2% - 5.5% | 4.8% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.49 | 0.53 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.4% | 6.1% |
Tax rate | 0.0% | 0.0% |
Debt/Equity ratio | 0.71 | 0.71 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 4.2% | 5.5% |
Selected WACC | 4.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
3292.T | Aeon Reit Investment Corp | 0.71 | 0.17 | 0.1 |
3226.T | Nippon Accommodations Fund Inc | 0.56 | 0.15 | 0.1 |
3234.T | Mori Hills Reit Investment Corp | 0.74 | 0.33 | 0.19 |
3466.T | LaSalle Logiport REIT | 0.69 | 0.19 | 0.11 |
8953.T | Japan Metropolitan Fund Investment Corp | 0.72 | 0.06 | 0.03 |
8963.T | Invincible Investment Corp | 0.66 | 0.45 | 0.27 |
8964.T | Frontier Real Estate Investment Corp | 0.57 | 0.25 | 0.16 |
8967.T | Japan Logistics Fund Inc | 0.46 | 0.32 | 0.22 |
8968.T | Fukuoka Reit Corp | 0.63 | 0.38 | 0.23 |
8972.T | Kenedix Office Investment Corp | 0.88 | 0.29 | 0.16 |
Low | High | |
Unlevered beta | 0.14 | 0.17 |
Relevered beta | 0.24 | 0.3 |
Adjusted relevered beta | 0.49 | 0.53 |
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.