3690.T WACC - Weighted Average Cost of Capital
The WACC of YRGLM Inc (3690.T) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.0% - 8.4% | 6.7% |
| Tax rate | 34.1% - 35.8% | 34.95% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.6% - 7.3% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.6 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 8.4% |
| Tax rate | 34.1% | 35.8% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.6% | 7.3% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3690.T | YRGLM Inc | 0.25 | 0.45 | 0.38 |
| 2159.T | Full Speed Inc | 0.06 | 0.81 | 0.78 |
| 2334.T | Eole Inc | 0.06 | -0.64 | -0.62 |
| 3906.T | Albert Inc | 0 | 1.19 | 1.19 |
| 3970.T | Innovation Inc | 0.92 | 0.45 | 0.28 |
| 6027.T | Bengo4.com Inc | 0.04 | 0.7 | 0.68 |
| 6550.T | Fringe81 Co Ltd | 0.18 | 0.19 | 0.17 |
| 6562.T | Geniee Inc | 0.5 | 0.86 | 0.65 |
| 6573.T | Agile Media Network Inc | 0.06 | 0.71 | 0.69 |
| 7069.T | CyberBuzz Inc | 0.4 | 0.14 | 0.11 |
| Low | High | |
| Unlevered beta | 0.34 | 0.67 |
| Relevered beta | 0.4 | 0.78 |
| Adjusted relevered beta | 0.6 | 0.85 |
3690.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 3690.T:
cost_of_equity (6.70%) = 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.