The WACC of Kokopelli Inc (4167.T) is 8.4%.
Range | Selected | |
Cost of equity | 7.2% - 10.2% | 8.7% |
Tax rate | 27.7% - 32.9% | 30.3% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 7.0% - 9.9% | 8.4% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.95 | 1.1 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.2% | 10.2% |
Tax rate | 27.7% | 32.9% |
Debt/Equity ratio | 0.05 | 0.05 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 7.0% | 9.9% |
Selected WACC | 8.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
4167.T | Kokopelli Inc | 0.05 | 1.66 | 1.6 |
2321.T | KK Softfront Holdings | 1.1 | 0.82 | 0.46 |
3680.T | Hotto Link Inc | 0.2 | 1.33 | 1.16 |
3687.T | Fixstars Corp | 0.01 | 1.38 | 1.37 |
3773.T | Advanced Media Inc | 0.09 | 1 | 0.94 |
3976.T | Shanon Inc | 0.68 | 0.45 | 0.3 |
3999.T | KnowledgeSuite Inc | 0.45 | 0.84 | 0.63 |
4060.T | Rakumo Inc | 0.09 | 0.46 | 0.43 |
4168.T | Yappli Inc | 0.14 | 1.18 | 1.07 |
4736.T | Nippon Rad Inc | 0 | 1.17 | 1.17 |
Low | High | |
Unlevered beta | 0.82 | 1.11 |
Relevered beta | 0.93 | 1.15 |
Adjusted relevered beta | 0.95 | 1.1 |
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 4167.T:
cost_of_equity (8.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.95) + 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.