3299.T
Mugen Estate Co Ltd
Price:  
1,887 
JPY
Volume:  
161,300
Japan | Real Estate Management & Development

3299.T WACC - Weighted Average Cost of Capital

The WACC of Mugen Estate Co Ltd (3299.T) is 4.9%.

The Cost of Equity of Mugen Estate Co Ltd (3299.T) is 7.05%.
The Cost of Debt of Mugen Estate Co Ltd (3299.T) is 4.25%.

RangeSelected
Cost of equity5.7% - 8.4%7.05%
Tax rate30.8% - 31.3%31.05%
Cost of debt4.0% - 4.5%4.25%
WACC4.2% - 5.7%4.9%
WACC

3299.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.710.84
Additional risk adjustments0.0%0.5%
Cost of equity5.7%8.4%
Tax rate30.8%31.3%
Debt/Equity ratio
1.051.05
Cost of debt4.0%4.5%
After-tax WACC4.2%5.7%
Selected WACC4.9%

3299.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 3299.T:

cost_of_equity (7.05%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.71) + 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.