3686.T
DLE Inc
Price:  
158.00 
JPY
Volume:  
565,900.00
Japan | Media
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3686.T WACC - Weighted Average Cost of Capital

The WACC of DLE Inc (3686.T) is 6.4%.

The Cost of Equity of DLE Inc (3686.T) is 6.40%.
The Cost of Debt of DLE Inc (3686.T) is 6.85%.

Range Selected
Cost of equity 5.00% - 7.80% 6.40%
Tax rate 2.90% - 6.00% 4.45%
Cost of debt 6.70% - 7.00% 6.85%
WACC 5.0% - 7.8% 6.4%
WACC

3686.T WACC calculation

Category Low High
Long-term bond rate 1.4% 1.9%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.51 0.68
Additional risk adjustments 0.5% 1.0%
Cost of equity 5.00% 7.80%
Tax rate 2.90% 6.00%
Debt/Equity ratio 0 0
Cost of debt 6.70% 7.00%
After-tax WACC 5.0% 7.8%
Selected WACC 6.4%

3686.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 3686.T:

cost_of_equity (6.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.51) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.