4584.T WACC - Weighted Average Cost of Capital

The WACC of Gene Techno Science Co Ltd (4584.T) is 7.0%.

The Cost of Equity of Gene Techno Science Co Ltd (4584.T) is 7.45%.

The Cost of Debt of Gene Techno Science Co Ltd (4584.T) is 5.50%.

	Range	Selected
Cost of equity	5.10% - 9.80%	7.45%
Tax rate	0.20% - 0.20%	0.20%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.8% - 9.1%	7.0%

WACC

4584.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.44	0.89

Additional risk adjustments	1.0%	1.5%
Cost of equity	5.10%	9.80%

Tax rate	0.20%	0.20%
Debt/Equity ratio	0.31	0.31
Cost of debt	4.00%	7.00%

After-tax WACC	4.8%	9.1%


Selected WACC	7.0%

4584.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 4584.T:

cost_of_equity (7.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.44) + risk_adjustments (1.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.