3462.T WACC - Weighted Average Cost of Capital
The WACC of Nomura Real Estate Master Fund Inc (3462.T) is 4.8%.
| Range | Selected | |
| Cost of equity | 4.4% - 6.0% | 5.2% |
| Tax rate | 0.0% - 0.0% | 0% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.3% - 5.3% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.5 | 0.5 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.4% | 6.0% |
| Tax rate | 0.0% | 0.0% |
| Debt/Equity ratio | 0.77 | 0.77 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.3% | 5.3% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3462.T | Nomura Real Estate Master Fund Inc | 0.77 | 0.24 | 0.14 |
| 3295.T | Hulic Reit Inc | 0.86 | 0.19 | 0.1 |
| 3296.T | Nippon REIT Investment Corp | 0.87 | 0.27 | 0.15 |
| 3459.T | Samty Residential Investment Corp | 1.17 | 0.32 | 0.15 |
| 3468.T | Star Asia Investment Corp | 0.8 | 0.32 | 0.18 |
| 8956.T | Premier Investment Corp | 0.77 | 0.26 | 0.15 |
| 8957.T | Tokyu REIT Inc | 0.62 | 0.41 | 0.26 |
| 8966.T | Heiwa Real Estate REIT Inc | 0.75 | 0.34 | 0.2 |
| 8972.T | Kenedix Office Investment Corp | 0.89 | 0.25 | 0.13 |
| 8984.T | Daiwa House REIT Investment Corp | 0.76 | 0.19 | 0.11 |
| Low | High | |
| Unlevered beta | 0.14 | 0.15 |
| Relevered beta | 0.25 | 0.25 |
| Adjusted relevered beta | 0.5 | 0.5 |
3462.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 3462.T:
cost_of_equity (5.20%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.5) + 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.