3919.T WACC - Weighted Average Cost of Capital

The WACC of PiPEDO HD Inc (3919.T) is 7.7%.

The Cost of Equity of PiPEDO HD Inc (3919.T) is 8.10%.

The Cost of Debt of PiPEDO HD Inc (3919.T) is 4.25%.

	Range	Selected
Cost of equity	6.70% - 9.50%	8.10%
Tax rate	35.40% - 39.10%	37.25%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.4% - 9.1%	7.7%

WACC

3919.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.86	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	9.50%

Tax rate	35.40%	39.10%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.00%	4.50%

After-tax WACC	6.4%	9.1%


Selected WACC	7.7%

3919.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 3919.T:

cost_of_equity (8.10%) = 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.