3981.T WACC - Weighted Average Cost of Capital
The WACC of Beaglee Inc (3981.T) is 6.6%.
| Range | Selected | |
| Cost of equity | 7.1% - 10.3% | 8.7% |
| Tax rate | 27.7% - 30.6% | 29.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.5% - 7.6% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.93 | 1.11 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 10.3% |
| Tax rate | 27.7% | 30.6% |
| Debt/Equity ratio | 0.59 | 0.59 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.5% | 7.6% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3981.T | Beaglee Inc | 0.59 | 1.02 | 0.72 |
| 2656.T | Vector Inc | 0 | 1.33 | 1.33 |
| 3135.T | MarketEnterprise Co Ltd | 0.28 | 1.18 | 0.98 |
| 3137.T | Fundely Co Ltd | 1.34 | 1.07 | 0.55 |
| 3138.T | Fujisan Magazine Service Co Ltd | 0.18 | 0.29 | 0.26 |
| 3195.T | Generation Pass Co Ltd | 0.3 | 0 | 0 |
| 3660.T | Istyle Inc | 0.21 | 1.56 | 1.37 |
| 3674.T | Aucfan Co Ltd | 0.43 | 0.89 | 0.69 |
| 3807.T | Fisco Ltd | 0 | 1.35 | 1.35 |
| 3995.T | Skiyaki Inc | 0.04 | 0.01 | 0.01 |
| Low | High | |
| Unlevered beta | 0.63 | 0.83 |
| Relevered beta | 0.9 | 1.16 |
| Adjusted relevered beta | 0.93 | 1.11 |
3981.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 3981.T:
cost_of_equity (8.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.93) + 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.