3360.T WACC - Weighted Average Cost of Capital
The WACC of Ship Healthcare Holdings Inc (3360.T) is 6.9%.
| Range | Selected | |
| Cost of equity | 6.0% - 9.4% | 7.7% |
| Tax rate | 39.7% - 41.0% | 40.35% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.5% - 8.3% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.76 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 9.4% |
| Tax rate | 39.7% | 41.0% |
| Debt/Equity ratio | 0.18 | 0.18 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.5% | 8.3% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3360.T | Ship Healthcare Holdings Inc | 0.18 | 0.5 | 0.45 |
| 000963.SZ | Huadong Medicine Co Ltd | 0.08 | 1.23 | 1.17 |
| 2689.T | OLBA Healthcare Holdings Inc | 0.13 | 0.41 | 0.38 |
| 3151.T | Vital Ksk Holdings Inc | 0.14 | 0.49 | 0.45 |
| 3154.T | Medius Holdings Co Ltd | 1.27 | 0.76 | 0.43 |
| 600511.SS | China National Medicines Corp Ltd | 0.2 | 1 | 0.89 |
| 7476.T | As One Corp | 0.04 | 0.68 | 0.66 |
| 9729.T | Tokai Corp (Gifu) | 0.03 | 0.87 | 0.86 |
| EBO.NZ | EBOS Group Ltd | 0.22 | 1.19 | 1.05 |
| SIG.AX | Sigma Healthcare Ltd | 0 | 0.99 | 0.99 |
| Low | High | |
| Unlevered beta | 0.58 | 0.87 |
| Relevered beta | 0.64 | 0.97 |
| Adjusted relevered beta | 0.76 | 0.98 |
3360.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 3360.T:
cost_of_equity (7.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.76) + 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.