3909.T WACC - Weighted Average Cost of Capital
The WACC of Showcase Inc (3909.T) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.8% | 6.65% |
| Tax rate | 7.2% - 12.2% | 9.7% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.9% - 7.2% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.67 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.8% |
| Tax rate | 7.2% | 12.2% |
| Debt/Equity ratio | 0.57 | 0.57 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.9% | 7.2% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3909.T | Showcase Inc | 0.57 | 0.61 | 0.4 |
| 075130.KQ | Plantynet Co Ltd | 0.07 | 0.17 | 0.16 |
| 3683.T | Cyberlinks Co Ltd | 0.23 | 0.54 | 0.45 |
| 3985.T | Temona Inc | 0.28 | 0.74 | 0.59 |
| 4444.T | InfoNet Inc | 0.13 | 0.28 | 0.25 |
| 4499.T | Speee Inc | 0.07 | 1.87 | 1.76 |
| 6185.T | SMN Corp | 0.01 | 1.05 | 1.04 |
| 7093.T | Adish Co Ltd | 0.45 | -0.31 | -0.22 |
| 8645.HK | Nomad Technologies Holdings Ltd | 0.04 | -0.18 | -0.17 |
| 9449.T | GMO Internet Inc | 1.48 | 0.94 | 0.41 |
| Low | High | |
| Unlevered beta | 0.34 | 0.42 |
| Relevered beta | 0.51 | 0.64 |
| Adjusted relevered beta | 0.67 | 0.76 |
3909.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 3909.T:
cost_of_equity (6.65%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.67) + 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.