4769.T WACC - Weighted Average Cost of Capital
The WACC of Information Creative Co Ltd (4769.T) is 5.0%.
| Range | Selected | |
| Cost of equity | 5.0% - 8.0% | 6.5% |
| Tax rate | 29.6% - 31.3% | 30.45% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.2% - 5.7% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.58 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 8.0% |
| Tax rate | 29.6% | 31.3% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.2% | 5.7% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4769.T | Information Creative Co Ltd | 0.81 | 0.1 | 0.06 |
| 1724.T | Synclayer Inc | 0.81 | 0.25 | 0.16 |
| 2169.T | CDS Co Ltd | 0.05 | 0.22 | 0.22 |
| 2307.T | Cross Cat Co Ltd | 0.08 | 1.19 | 1.12 |
| 2332.T | Quest Co Ltd | 0 | 0.7 | 0.7 |
| 3625.T | Techfirm Holdings Inc | 0.17 | 1 | 0.89 |
| 3666.T | Tecnos Japan Inc | 0.02 | 0.28 | 0.28 |
| 3766.T | Systems Design Co Ltd | 0.01 | 0.6 | 0.59 |
| 4437.T | Gooddays Holdings Inc | 0.11 | 0.24 | 0.23 |
| 6193.T | Virtualex Holdings Inc | 0.43 | 0.21 | 0.16 |
| 6942.T | Sophia Holdings Co Ltd | 0.5 | 0.24 | 0.18 |
| Low | High | |
| Unlevered beta | 0.22 | 0.28 |
| Relevered beta | 0.37 | 0.69 |
| Adjusted relevered beta | 0.58 | 0.79 |
4769.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 4769.T:
cost_of_equity (6.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.58) + 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.