4641.T WACC - Weighted Average Cost of Capital
The WACC of Altech Corp (4641.T) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.4% | 7.2% |
| Tax rate | 30.6% - 31.2% | 30.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.9% - 8.4% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.75 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.4% |
| Tax rate | 30.6% | 31.2% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.9% | 8.4% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4641.T | Altech Corp | 0 | 0.79 | 0.79 |
| 2462.T | LIKE Inc | 0.44 | 0.56 | 0.43 |
| 2471.T | S-Pool Inc | 0.85 | 0.89 | 0.56 |
| 2475.T | WDB Holdings Co Ltd | 0 | 0.76 | 0.76 |
| 4318.T | Quick Co Ltd | 0 | 0.91 | 0.9 |
| 4763.T | Creek & River Co Ltd | 0.12 | 0.68 | 0.62 |
| 4848.T | Fullcast Holdings Co Ltd | 0.02 | 0.62 | 0.61 |
| 6070.T | Careerlink Co Ltd | 0.03 | 0.62 | 0.61 |
| 7088.T | Forum Engineering Inc | 0 | 0.9 | 0.9 |
| 7781.T | Hirayama Holdings Co Ltd | 0.2 | 0.87 | 0.77 |
| Low | High | |
| Unlevered beta | 0.62 | 0.77 |
| Relevered beta | 0.63 | 0.76 |
| Adjusted relevered beta | 0.75 | 0.84 |
4641.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 4641.T:
cost_of_equity (7.20%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.75) + 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.