4437.T WACC - Weighted Average Cost of Capital
The WACC of Gooddays Holdings Inc (4437.T) is 6.7%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.4% | 7.1% |
| Tax rate | 35.8% - 36.9% | 36.35% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.5% - 7.9% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.72 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.4% |
| Tax rate | 35.8% | 36.9% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.5% | 7.9% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4437.T | Gooddays Holdings Inc | 0.11 | 0.24 | 0.22 |
| 3625.T | Techfirm Holdings Inc | 0.22 | 1 | 0.88 |
| 3753.T | Flight Holdings Inc | 0.29 | 1.22 | 1.03 |
| 3766.T | Systems Design Co Ltd | 0 | 0.55 | 0.55 |
| 4386.T | SIG Co Ltd | 0.27 | 1.09 | 0.93 |
| 4421.T | D I System Co Ltd | 0.02 | 0.34 | 0.34 |
| 4442.T | Valtes Co Ltd | 0.11 | 0.95 | 0.89 |
| 4492.T | Genetec Corp | 0.11 | 0.59 | 0.55 |
| 4814.T | Nextware Ltd | 0 | 0.62 | 0.62 |
| 6193.T | Virtualex Holdings Inc | 0.3 | 0.19 | 0.16 |
| Low | High | |
| Unlevered beta | 0.55 | 0.72 |
| Relevered beta | 0.58 | 0.78 |
| Adjusted relevered beta | 0.72 | 0.85 |
4437.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 4437.T:
cost_of_equity (7.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.72) + 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.