3712.T WACC - Weighted Average Cost of Capital
The WACC of Information Planning Co Ltd (3712.T) is 6.7%.
| Range | Selected | |
| Cost of equity | 8.2% - 11.6% | 9.9% |
| Tax rate | 30.7% - 30.7% | 30.7% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.9% - 7.6% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.12 | 1.3 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 11.6% |
| Tax rate | 30.7% | 30.7% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.9% | 7.6% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3712.T | Information Planning Co Ltd | 1.11 | 0.56 | 0.32 |
| 3753.T | Flight Holdings Inc | 0.25 | 1.25 | 1.06 |
| 3996.T | Signpost Corp | 0.13 | 0.97 | 0.89 |
| 4016.T | MIT Holdings Co Ltd | 0.62 | 0.73 | 0.51 |
| 4166.T | Cacco Inc | 0.04 | 0.33 | 0.32 |
| 4304.T | Estore Corp | 0.08 | 0.51 | 0.48 |
| 4386.T | SIG Co Ltd | 0.37 | 1.04 | 0.83 |
| 4442.T | Valtes Co Ltd | 0.18 | 0.92 | 0.82 |
| 4450.T | Power Solutions Ltd | 0.17 | 0.4 | 0.36 |
| 6580.T | Writeup Co Ltd | 0 | 1.39 | 1.39 |
| 7527.T | Systemsoft Corp | 0.04 | 1.11 | 1.09 |
| Low | High | |
| Unlevered beta | 0.51 | 0.83 |
| Relevered beta | 1.18 | 1.45 |
| Adjusted relevered beta | 1.12 | 1.3 |
3712.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 3712.T:
cost_of_equity (9.90%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.12) + 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.