4477.T WACC - Weighted Average Cost of Capital
The WACC of Base Inc (4477.T) is 9.3%.
| Range | Selected | |
| Cost of equity | 8.2% - 10.7% | 9.45% |
| Tax rate | 1.4% - 9.9% | 5.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 8.1% - 10.5% | 9.3% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.11 | 1.16 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 10.7% |
| Tax rate | 1.4% | 9.9% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 8.1% | 10.5% |
| Selected WACC | 9.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4477.T | Base Inc | 0.02 | 1.1 | 1.08 |
| 300738.SZ | Guangdong Aofei Data Technology Co Ltd | 0.35 | 1.79 | 1.34 |
| 3633.T | GMO Pepabo Inc | 0.14 | 0.72 | 0.63 |
| 3683.T | Cyberlinks Co Ltd | 0.2 | 0.52 | 0.44 |
| 3778.T | Sakura Internet Inc | 0.14 | 1.36 | 1.2 |
| 3788.T | GMO GlobalSign Holdings KK | 0.13 | 1.18 | 1.05 |
| 3915.T | TerraSky Co Ltd | 0.01 | 1.33 | 1.32 |
| 4499.T | Speee Inc | 0.06 | 1.71 | 1.62 |
| 688030.SS | Hillstone Networks Co Ltd | 0.2 | 1.49 | 1.24 |
| MP1.AX | Megaport Ltd | 0.01 | 1.2 | 1.19 |
| Low | High | |
| Unlevered beta | 1.15 | 1.22 |
| Relevered beta | 1.16 | 1.24 |
| Adjusted relevered beta | 1.11 | 1.16 |
4477.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 4477.T:
cost_of_equity (9.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.11) + 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.