3917.T WACC - Weighted Average Cost of Capital
The WACC of iRidge Inc (3917.T) is 6.7%.
| Range | Selected | |
| Cost of equity | 6.9% - 9.4% | 8.15% |
| Tax rate | 27.7% - 30.6% | 29.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.8% - 7.7% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.9 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 9.4% |
| Tax rate | 27.7% | 30.6% |
| Debt/Equity ratio | 0.39 | 0.39 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.8% | 7.7% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3917.T | iRidge Inc | 0.39 | 0.74 | 0.58 |
| 2330.T | Forside Co Ltd | 0.04 | 0.88 | 0.86 |
| 2468.T | FueTrek Co Ltd | 0.22 | 0.84 | 0.73 |
| 3710.T | Jorudan Co Ltd | 0 | 0.02 | 0.02 |
| 3727.T | Aplix Corp | 0.16 | 0.99 | 0.89 |
| 3910.T | MKSystem Corp | 0.69 | 0.44 | 0.3 |
| 3992.T | Needs Well Inc | 0 | 1.4 | 1.4 |
| 4667.T | Aisan Technology Co Ltd | 0.04 | 0.79 | 0.77 |
| 4829.T | Nihon Enterprise Co Ltd | 0.04 | 0.79 | 0.77 |
| 6579.T | logly Inc | 0.18 | 0.61 | 0.55 |
| Low | High | |
| Unlevered beta | 0.67 | 0.77 |
| Relevered beta | 0.85 | 0.97 |
| Adjusted relevered beta | 0.9 | 0.98 |
3917.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 3917.T:
cost_of_equity (8.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.9) + 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.