3476.T WACC - Weighted Average Cost of Capital
The WACC of Mirai Corp (3476.T) is 4.8%.
| Range | Selected | |
| Cost of equity | 4.5% - 6.3% | 5.4% |
| Tax rate | 0.0% - 0.3% | 0.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.2% - 5.4% | 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 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.5% | 6.3% |
| Tax rate | 0.0% | 0.3% |
| Debt/Equity ratio | 1.09 | 1.09 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.2% | 5.4% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3476.T | Mirai Corp | 1.09 | 0.25 | 0.12 |
| 2972.T | Sankei Real Estate Inc | 1.16 | 0.38 | 0.17 |
| 3234.T | Mori Hills Reit Investment Corp | 0.73 | 0.32 | 0.18 |
| 3290.T | One REIT Inc | 0.94 | 0.29 | 0.15 |
| 3298.T | Invesco Office J-Reit Inc | 0.63 | 0.76 | 0.47 |
| 8955.T | Japan Prime Realty Investment Corp | 2.44 | 0.15 | 0.04 |
| 8958.T | Global One Real Estate Investment Corp | 0.68 | 0.17 | 0.1 |
| 8961.T | Mori Trust Sogo Reit Inc | 0.92 | 0.33 | 0.17 |
| 8975.T | Ichigo Office REIT Investment Corp | 0.87 | 0.22 | 0.12 |
| 8987.T | Japan Excellent Inc | 0.73 | 0.21 | 0.12 |
| Low | High | |
| Unlevered beta | 0.12 | 0.16 |
| Relevered beta | 0.25 | 0.33 |
| Adjusted relevered beta | 0.5 | 0.55 |
3476.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 3476.T:
cost_of_equity (5.40%) = 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.