3796.T WACC - Weighted Average Cost of Capital
The WACC of e-Seikatsu Co Ltd (3796.T) is 5.8%.
| Range | Selected | |
| Cost of equity | 6.6% - 10.0% | 8.3% |
| Tax rate | 31.7% - 33.9% | 32.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.0% - 6.6% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.86 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 10.0% |
| Tax rate | 31.7% | 33.9% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.0% | 6.6% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3796.T | e-Seikatsu Co Ltd | 0.99 | 0.33 | 0.2 |
| 072130.KS | UAngel Corp | 0.05 | 0.52 | 0.5 |
| 2351.T | ASJ Inc | 0.24 | 0.64 | 0.55 |
| 3908.T | Collabos Corp | 0.18 | 0.48 | 0.43 |
| 3914.T | Jig-Saw Inc | 0.03 | 0.97 | 0.95 |
| 3915.T | TerraSky Co Ltd | 0.01 | 1.37 | 1.37 |
| 3960.T | Valuedesign Inc | 0.15 | 0.99 | 0.89 |
| 4316.T | Bemap Inc | 0.06 | 0.25 | 0.24 |
| 4450.T | Power Solutions Ltd | 0.17 | 0.41 | 0.37 |
| 7078.T | INCLUSIVE Inc | 0.13 | 0.88 | 0.81 |
| 7093.T | Adish Co Ltd | 0.43 | -0.3 | -0.23 |
| Low | High | |
| Unlevered beta | 0.43 | 0.55 |
| Relevered beta | 0.79 | 1.09 |
| Adjusted relevered beta | 0.86 | 1.06 |
3796.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 3796.T:
cost_of_equity (8.30%) = 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.