3558.T WACC - Weighted Average Cost of Capital
The WACC of Locondo Inc (3558.T) is 6.8%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.1% | 6.95% |
| Tax rate | 31.0% - 33.4% | 32.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.6% - 7.9% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.72 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.1% |
| Tax rate | 31.0% | 33.4% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.6% | 7.9% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3558.T | Locondo Inc | 0.05 | 0.97 | 0.94 |
| 3134.T | Hamee Corp | 0.11 | 0.7 | 0.65 |
| 3135.T | MarketEnterprise Co Ltd | 0.28 | 1.18 | 0.99 |
| 3172.T | Tea Life Co Ltd | 0.21 | 0.36 | 0.31 |
| 3185.T | Dream Vision Co Ltd | 0.61 | 0.04 | 0.03 |
| 3187.T | Sanwa Co Ltd | 0.45 | 0.56 | 0.43 |
| 3556.T | RenetJapanGroup Inc | 1.31 | 1.28 | 0.68 |
| 3674.T | Aucfan Co Ltd | 0.43 | 0.89 | 0.69 |
| 7685.T | BuySell Technologies Co Ltd | 0.28 | 1.45 | 1.22 |
| 7695.T | Koukandekirukun Inc | 0.1 | 0.42 | 0.39 |
| Low | High | |
| Unlevered beta | 0.56 | 0.69 |
| Relevered beta | 0.58 | 0.72 |
| Adjusted relevered beta | 0.72 | 0.81 |
3558.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 3558.T:
cost_of_equity (6.95%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.72) + 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.