3494.T WACC - Weighted Average Cost of Capital

The WACC of Mullion Co Ltd (3494.T) is 4.8%.

The Cost of Equity of Mullion Co Ltd (3494.T) is 9.80%.

The Cost of Debt of Mullion Co Ltd (3494.T) is 4.25%.

	Range	Selected
Cost of equity	8.50% - 11.10%	9.80%
Tax rate	32.80% - 33.30%	33.05%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.3% - 5.3%	4.8%

WACC

3494.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.16	1.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.50%	11.10%

Tax rate	32.80%	33.30%
Debt/Equity ratio	2.57	2.57
Cost of debt	4.00%	4.50%

After-tax WACC	4.3%	5.3%


Selected WACC	4.8%

3494.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 3494.T:

cost_of_equity (9.80%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.16) + 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.