3539.T WACC - Weighted Average Cost of Capital
The WACC of JM Holdings Co Ltd (3539.T) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.5% | 6.45% |
| Tax rate | 37.7% - 38.7% | 38.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.0% - 6.9% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.65 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.5% |
| Tax rate | 37.7% | 38.7% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.0% | 6.9% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3539.T | JM Holdings Co Ltd | 0.14 | 0.29 | 0.27 |
| 2659.T | San-A Co Ltd | 0 | 0.43 | 0.43 |
| 2742.T | Halows Co Ltd | 0.11 | 0.56 | 0.52 |
| 7508.T | G-7 Holdings Inc | 0.24 | 0.65 | 0.57 |
| 7520.T | Eco's Co Ltd | 0.43 | 0.67 | 0.53 |
| 7596.T | Uoriki Co Ltd | 0 | 0.43 | 0.43 |
| 7601.T | Poplar Co Ltd | 0.24 | 0.75 | 0.65 |
| 8167.T | Retail Partners Co Ltd | 0.21 | 0.63 | 0.56 |
| 9823.T | Mammy Mart Corp | 0.24 | 0.51 | 0.44 |
| 9919.T | Kansai Super Market Ltd | 0.13 | 0.35 | 0.33 |
| Low | High | |
| Unlevered beta | 0.44 | 0.53 |
| Relevered beta | 0.48 | 0.57 |
| Adjusted relevered beta | 0.65 | 0.71 |
3539.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 3539.T:
cost_of_equity (6.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.65) + 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.