3461.T WACC - Weighted Average Cost of Capital
The WACC of Palma Co Ltd (3461.T) is 5.8%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.5% | 6.4% |
| Tax rate | 31.8% - 33.0% | 32.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.9% - 6.8% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.64 | 0.72 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 7.5% |
| Tax rate | 31.8% | 33.0% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.9% | 6.8% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3461.T | Palma Co Ltd | 0.2 | 1.05 | 0.92 |
| 2195.T | Amita Holdings Co Ltd | 0.35 | 0.89 | 0.72 |
| 2499.T | Nihonwasou Holdings Inc | 1.58 | 0.23 | 0.11 |
| 4290.T | Prestige International Inc | 0 | 0.54 | 0.54 |
| 4351.T | Yamada Servicer Synthetic Office Co Ltd | 0.56 | 0.16 | 0.11 |
| 4659.T | AJIS Co Ltd | 0.01 | 0.25 | 0.25 |
| 6093.T | Escrow Agent Japan Inc | 0.01 | 0.77 | 0.77 |
| 7087.T | Willtec Co Ltd | 0.14 | 0.53 | 0.49 |
| 9313.T | Maruhachi Warehouse Co Ltd | 0.72 | 0.51 | 0.34 |
| 9780.T | Harima B.Stem Corp | 0.11 | 0.48 | 0.45 |
| Low | High | |
| Unlevered beta | 0.4 | 0.51 |
| Relevered beta | 0.46 | 0.58 |
| Adjusted relevered beta | 0.64 | 0.72 |
3461.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 3461.T:
cost_of_equity (6.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.64) + 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.