3655.T WACC - Weighted Average Cost of Capital
The WACC of BrainPad Inc (3655.T) is 6.0%.
| Range | Selected | |
| Cost of equity | 7.2% - 9.8% | 8.5% |
| Tax rate | 28.7% - 31.7% | 30.2% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.4% - 6.6% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.95 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 9.8% |
| Tax rate | 28.7% | 31.7% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.4% | 6.6% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3655.T | BrainPad Inc | 1.2 | 1.06 | 0.58 |
| 3776.T | BroadBand Tower Inc | 0.32 | 0.88 | 0.72 |
| 3848.T | Data Applications Co Ltd | 0.02 | 0.43 | 0.42 |
| 3988.T | SYS Holdings Co Ltd | 0.21 | 0.51 | 0.45 |
| 4169.T | Enechange Ltd | 0.09 | 0.88 | 0.83 |
| 4430.T | Tokai Soft Co Ltd | 0.14 | 0.71 | 0.64 |
| 4486.T | Unite and Grow Inc | 0 | 0.54 | 0.54 |
| 4824.T | Mediaseek Inc | 0.06 | 0.47 | 0.45 |
| 7046.T | Tecnos Data Science Engineering Inc | 0 | 1.24 | 1.24 |
| 7068.T | Feedforce Inc | 0.16 | 0.61 | 0.54 |
| 7072.T | Intimate Merger Inc | 0.04 | 0.63 | 0.61 |
| Low | High | |
| Unlevered beta | 0.54 | 0.61 |
| Relevered beta | 0.93 | 1.06 |
| Adjusted relevered beta | 0.95 | 1.04 |
3655.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 3655.T:
cost_of_equity (8.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.95) + 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.