4686.T WACC - Weighted Average Cost of Capital
The WACC of Justsystems Corp (4686.T) is 7.0%.
| Range | Selected | |
| Cost of equity | 9.1% - 11.9% | 10.5% |
| Tax rate | 29.4% - 30.0% | 29.7% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.3% - 7.7% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.26 | 1.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.1% | 11.9% |
| Tax rate | 29.4% | 30.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.3% | 7.7% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4686.T | Justsystems Corp | 1.16 | 0.63 | 0.35 |
| 3673.T | Broadleaf Co Ltd | 0.09 | 0.89 | 0.84 |
| 3993.T | PKSHA Technology Inc | 0.05 | 1.03 | 0.99 |
| 3994.T | Money Forward Inc | 0.14 | 0.78 | 0.71 |
| 4344.T | Sourcenext Corp | 0.25 | 1.09 | 0.93 |
| 4425.T | Kudan Inc | 0.01 | 1.21 | 1.2 |
| 4435.T | Kaonavi Inc | 0.01 | 0.68 | 0.67 |
| 4448.T | Chatwork Co Ltd | 0.06 | 0.82 | 0.79 |
| 4478.T | freee KK | 0.02 | 0.88 | 0.87 |
| 4488.T | AI inside Inc | 0.13 | 0.98 | 0.9 |
| 9928.T | Miroku Jyoho Service Co Ltd | 0.16 | 0.81 | 0.73 |
| Low | High | |
| Unlevered beta | 0.79 | 0.87 |
| Relevered beta | 1.39 | 1.49 |
| Adjusted relevered beta | 1.26 | 1.33 |
4686.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 4686.T:
cost_of_equity (10.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.26) + 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.