3370.T WACC - Weighted Average Cost of Capital
The WACC of Fujita Corporation Co Ltd (3370.T) is 5.8%.
| Range | Selected | |
| Cost of equity | 8.3% - 13.0% | 10.65% |
| Tax rate | 17.6% - 22.1% | 19.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.9% - 6.6% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.13 | 1.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 13.0% |
| Tax rate | 17.6% | 22.1% |
| Debt/Equity ratio | 2.04 | 2.04 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.9% | 6.6% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3370.T | Fujita Corporation Co Ltd | 2.04 | -0.19 | -0.07 |
| 3133.T | Kaihan Co Ltd | 0.05 | 1.3 | 1.25 |
| 3223.T | SLD Entertainment Inc | 0.07 | 0.54 | 0.51 |
| 3224.T | General Oyster Inc | 0.11 | 0.81 | 0.74 |
| 3358.T | Y.S.Food Co Ltd | 1.18 | 0.79 | 0.41 |
| 3372.T | Kanmonkai Co Ltd | 0.43 | 0.36 | 0.27 |
| 3418.T | Balnibarbi Co Ltd | 0.33 | 0.78 | 0.62 |
| 7625.T | Global-Dining Inc | 0.78 | 0.51 | 0.32 |
| 7682.T | Hamayuu Co Ltd | 0.19 | 0.43 | 0.37 |
| 9266.T | Ikka Dining Project Ltd | 0.89 | 1.47 | 0.87 |
| Low | High | |
| Unlevered beta | 0.39 | 0.55 |
| Relevered beta | 1.19 | 1.73 |
| Adjusted relevered beta | 1.13 | 1.49 |
3370.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 3370.T:
cost_of_equity (10.65%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.13) + 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.