3536.T WACC - Weighted Average Cost of Capital

The WACC of Axas Holdings Co Ltd (3536.T) is 3.3%.

The Cost of Equity of Axas Holdings Co Ltd (3536.T) is 4.70%.

The Cost of Debt of Axas Holdings Co Ltd (3536.T) is 4.25%.

	Range	Selected
Cost of equity	3.70% - 5.70%	4.70%
Tax rate	28.90% - 34.70%	31.80%
Cost of debt	4.00% - 4.50%	4.25%
WACC	3.1% - 3.6%	3.3%

WACC

3536.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.38	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	3.70%	5.70%

Tax rate	28.90%	34.70%
Debt/Equity ratio	3.21	3.21
Cost of debt	4.00%	4.50%

After-tax WACC	3.1%	3.6%


Selected WACC	3.3%

3536.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 3536.T:

cost_of_equity (4.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.38) + 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.