3710.T WACC - Weighted Average Cost of Capital
The WACC of Jorudan Co Ltd (3710.T) is 7.4%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.8% | 7.4% |
| Tax rate | 27.7% - 30.6% | 29.15% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.0% - 8.7% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.75 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.8% |
| Tax rate | 27.7% | 30.6% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.0% | 8.7% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3710.T | Jorudan Co Ltd | 0 | 0.02 | 0.02 |
| 2330.T | Forside Co Ltd | 0.04 | 0.84 | 0.82 |
| 2468.T | FueTrek Co Ltd | 0.22 | 0.84 | 0.73 |
| 3727.T | Aplix Corp | 0.16 | 0.98 | 0.88 |
| 3747.T | Intertrade Co Ltd | 0.1 | 0.93 | 0.87 |
| 3858.T | Ubiquitous AI Corp | 0.07 | 1.01 | 0.96 |
| 3910.T | MKSystem Corp | 0.71 | 0.46 | 0.31 |
| 3935.T | Edia Co Ltd | 0.27 | 1.05 | 0.88 |
| 3974.T | TBCSCAT Inc | 0.08 | 0.27 | 0.26 |
| 6579.T | logly Inc | 0.28 | 0.57 | 0.48 |
| Low | High | |
| Unlevered beta | 0.63 | 0.84 |
| Relevered beta | 0.63 | 0.84 |
| Adjusted relevered beta | 0.75 | 0.89 |
3710.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 3710.T:
cost_of_equity (7.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.75) + 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.