4770.T WACC - Weighted Average Cost of Capital
The WACC of Zuken Elmic Inc (4770.T) is 6.1%.
| Range | Selected | |
| Cost of equity | 4.9% - 7.3% | 6.1% |
| Tax rate | 16.7% - 25.9% | 21.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.9% - 7.3% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.57 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 7.3% |
| Tax rate | 16.7% | 25.9% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.9% | 7.3% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4770.T | Zuken Elmic Inc | 0.01 | 0.37 | 0.37 |
| 3042.T | SecuAvail Inc | 0 | 0.71 | 0.71 |
| 3803.T | Image Information Inc | 0 | 0.64 | 0.64 |
| 3814.T | Alphax Food System Co Ltd | 0.89 | 0.39 | 0.23 |
| 3987.T | Ecomott Inc | 0.37 | 0.82 | 0.64 |
| 4016.T | MIT Holdings Co Ltd | 0.62 | 0.73 | 0.48 |
| 4166.T | Cacco Inc | 0.04 | 0.33 | 0.32 |
| 4316.T | Bemap Inc | 0.05 | 0.26 | 0.25 |
| 4450.T | Power Solutions Ltd | 0.17 | 0.4 | 0.35 |
| 4814.T | Nextware Ltd | 0 | 0.61 | 0.61 |
| Low | High | |
| Unlevered beta | 0.36 | 0.53 |
| Relevered beta | 0.36 | 0.54 |
| Adjusted relevered beta | 0.57 | 0.69 |
4770.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 4770.T:
cost_of_equity (6.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.57) + 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.