3692.T WACC - Weighted Average Cost of Capital
The WACC of FFRI Security Inc (3692.T) is 5.9%.
| Range | Selected | |
| Cost of equity | 6.7% - 9.3% | 8% |
| Tax rate | 21.6% - 23.3% | 22.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 6.6% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.86 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 9.3% |
| Tax rate | 21.6% | 23.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 6.6% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3692.T | FFRI Security Inc | 0 | 1.13 | 1.13 |
| 3698.T | CRI Middleware Co Ltd | 0.13 | 0.91 | 0.83 |
| 3816.T | Daiwa Computer Co Ltd | 0.02 | 0.49 | 0.48 |
| 3817.T | SRA Holdings Inc | 0 | 0.62 | 0.61 |
| 3965.T | Capital Asset Planning Inc | 0.33 | 0.32 | 0.25 |
| 4284.T | Solxyz Co Ltd | 0.1 | 0.47 | 0.44 |
| 4288.T | Asgent Inc | 0.09 | 1.98 | 1.86 |
| 4441.T | Tobila Systems Inc | 0.02 | 0.46 | 0.45 |
| 4493.T | Cyber Security Cloud Inc | 0.02 | 1.5 | 1.47 |
| 4752.T | Showa System Engineering Corp | 0 | 0.19 | 0.19 |
| 9717.T | JASTEC Co Ltd | 0.01 | 0.31 | 0.31 |
| Low | High | |
| Unlevered beta | 0.45 | 0.61 |
| Relevered beta | 0.79 | 0.96 |
| Adjusted relevered beta | 0.86 | 0.97 |
3692.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 3692.T:
cost_of_equity (8.00%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.86) + 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.