4746.T WACC - Weighted Average Cost of Capital
The WACC of Toukei Computer Co Ltd (4746.T) is 5.1%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.6% | 7.3% |
| Tax rate | 30.5% - 30.6% | 30.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 5.9% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.75 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.6% |
| Tax rate | 30.5% | 30.6% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 5.9% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4746.T | Toukei Computer Co Ltd | 1.06 | 0.81 | 0.47 |
| 2493.T | E-Supportlink Ltd | 0.12 | 0.19 | 0.18 |
| 3640.T | Densan Co Ltd | 0.28 | 0.42 | 0.35 |
| 3676.T | Digital Hearts Holdings Co Ltd | 0.23 | 1.02 | 0.87 |
| 3784.T | VINX Corp | 0.03 | 0.38 | 0.37 |
| 3839.T | ODK Solutions Co Ltd | 0.25 | 0.21 | 0.18 |
| 3916.T | Digital Information Technologies Corp | 0.01 | 0.51 | 0.51 |
| 3960.T | Valuedesign Inc | 0.15 | 0.99 | 0.89 |
| 9408.T | Broadcasting System of Niigata Inc | 0.1 | 0.49 | 0.46 |
| 9685.T | Kycom Holdings Co Ltd | 0.61 | 0.93 | 0.65 |
| 9746.T | TKC Corp | 0 | 0.37 | 0.37 |
| Low | High | |
| Unlevered beta | 0.37 | 0.47 |
| Relevered beta | 0.63 | 0.82 |
| Adjusted relevered beta | 0.75 | 0.88 |
4746.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 4746.T:
cost_of_equity (7.30%) = 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.