4477.T
Base Inc
Price:  
390 
JPY
Volume:  
640,200
Japan | IT Services

4477.T WACC - Weighted Average Cost of Capital

The WACC of Base Inc (4477.T) is 9.3%.

The Cost of Equity of Base Inc (4477.T) is 9.45%.
The Cost of Debt of Base Inc (4477.T) is 4.25%.

RangeSelected
Cost of equity8.2% - 10.7%9.45%
Tax rate1.4% - 9.9%5.65%
Cost of debt4.0% - 4.5%4.25%
WACC8.1% - 10.5%9.3%
WACC

4477.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta1.111.16
Additional risk adjustments0.0%0.5%
Cost of equity8.2%10.7%
Tax rate1.4%9.9%
Debt/Equity ratio
0.020.02
Cost of debt4.0%4.5%
After-tax WACC8.1%10.5%
Selected WACC9.3%

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.