3641.T WACC - Weighted Average Cost of Capital
The WACC of Papyless Co Ltd (3641.T) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.8% | 6.45% |
| Tax rate | 34.1% - 36.2% | 35.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 7.8% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.6 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 7.8% |
| Tax rate | 34.1% | 36.2% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 7.8% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3641.T | Papyless Co Ltd | 0 | 0.45 | 0.45 |
| 2138.T | Crooz Inc | 2.14 | 0.85 | 0.36 |
| 2656.T | Vector Inc | 0 | 1.35 | 1.34 |
| 3137.T | Fundely Co Ltd | 1.33 | 1.06 | 0.57 |
| 3138.T | Fujisan Magazine Service Co Ltd | 0.18 | 0.31 | 0.28 |
| 3195.T | Generation Pass Co Ltd | 0.28 | 0.01 | 0.01 |
| 3660.T | Istyle Inc | 0.18 | 1.58 | 1.41 |
| 3807.T | Fisco Ltd | 0 | 1.34 | 1.34 |
| 3981.T | Beaglee Inc | 0.59 | 1.01 | 0.73 |
| 3995.T | Skiyaki Inc | 0.04 | 0.01 | 0.01 |
| Low | High | |
| Unlevered beta | 0.41 | 0.63 |
| Relevered beta | 0.4 | 0.64 |
| Adjusted relevered beta | 0.6 | 0.76 |
3641.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 3641.T:
cost_of_equity (6.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.6) + 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.