3689.T WACC - Weighted Average Cost of Capital
The WACC of Ignis Ltd (3689.T) is 6.6%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.7% | 6.6% |
| Tax rate | 30.6% - 30.7% | 30.65% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.5% - 7.7% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 0.8% | 1.2% |
| Equity market risk premium | 5.4% | 6.4% |
| Adjusted beta | 0.87 | 0.93 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.7% |
| Tax rate | 30.6% | 30.7% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.5% | 7.7% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3689.T | Ignis Ltd | 0.02 | 2.14 | 2.12 |
| 3667.T | Enish Inc | 0.09 | 0.27 | 0.26 |
| 3793.T | Drecom Co Ltd | 0.3 | 1.04 | 0.86 |
| 3815.T | Media Kobo Inc | 0.2 | 0.33 | 0.29 |
| 3903.T | gumi Inc | 0.12 | 0.86 | 0.8 |
| 3907.T | Silicon Studio Corp | 0.11 | 0.42 | 0.39 |
| 3928.T | Mynet Inc | 1.08 | 1.2 | 0.69 |
| 4644.T | Imagineer Co Ltd | 1 | 0.26 | 0.15 |
| 7035.T | and factory Inc | 0.1 | 0.69 | 0.64 |
| 7060.T | Geechs Inc | 0.42 | 0.79 | 0.61 |
| 7359.T | Tokyo Tsushin Inc | 0.46 | 1.02 | 0.77 |
| Low | High | |
| Unlevered beta | 0.61 | 0.69 |
| Relevered beta | 0.81 | 0.9 |
| Adjusted relevered beta | 0.87 | 0.93 |
3689.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 3689.T:
cost_of_equity (6.60%) = risk_free_rate (1.00%) + equity_risk_premium (5.90%) * adjusted_beta (0.87) + 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.