4496.T WACC - Weighted Average Cost of Capital
The WACC of Commerce One Holdings Inc (4496.T) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.4% | 7.3% |
| Tax rate | 34.2% - 34.9% | 34.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.2% - 8.3% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.78 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.4% |
| Tax rate | 34.2% | 34.9% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.2% | 8.3% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4496.T | Commerce One Holdings Inc | 0.01 | 0.59 | 0.58 |
| 2352.T | Azia Co Ltd | 0.26 | 1.39 | 1.19 |
| 3653.T | Morpho Inc | 0 | 1.25 | 1.24 |
| 3921.T | NEOJAPAN Inc | 0 | 1.01 | 1.01 |
| 4057.T | Interfactory Inc | 0.18 | 0.45 | 0.4 |
| 4388.T | AI Inc | 0.07 | 0.71 | 0.68 |
| 4389.T | Property Data Bank Inc | 0 | 0.66 | 0.66 |
| 4482.T | Wills Inc | 0.02 | 0.5 | 0.49 |
| 4667.T | Aisan Technology Co Ltd | 0.02 | 0.77 | 0.76 |
| 4829.T | Nihon Enterprise Co Ltd | 0.04 | 0.78 | 0.76 |
| Low | High | |
| Unlevered beta | 0.67 | 0.76 |
| Relevered beta | 0.67 | 0.76 |
| Adjusted relevered beta | 0.78 | 0.84 |
4496.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 4496.T:
cost_of_equity (7.30%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.78) + 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.