4809.T WACC - Weighted Average Cost of Capital
The WACC of Paraca Inc (4809.T) is 5.0%.
| Range | Selected | |
| Cost of equity | 6.4% - 8.9% | 7.65% |
| Tax rate | 31.8% - 32.1% | 31.95% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 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 | 0.81 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 8.9% |
| Tax rate | 31.8% | 32.1% |
| Debt/Equity ratio | 1.22 | 1.22 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 5.7% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4809.T | Paraca Inc | 1.22 | 0.59 | 0.32 |
| 1712.T | Daiseki Eco Solution Co Ltd | 0.37 | 0.55 | 0.44 |
| 2353.T | Nippon Parking Development Co Ltd | 0.19 | 0.61 | 0.54 |
| 3286.T | Trust Holdings Inc | 1.24 | 0.07 | 0.04 |
| 4658.T | Nippon Air Conditioning Services Co Ltd | 0.09 | 0.78 | 0.73 |
| 4666.T | Park24 Co Ltd | 0.42 | 0.65 | 0.51 |
| 6044.T | Sanki Service Corp | 0.09 | 0.48 | 0.45 |
| 6061.T | Universal Engeisha Co Ltd | 0.02 | 0.96 | 0.94 |
| 6086.T | Shin Maint Holdings Co Ltd | 0.02 | 0.29 | 0.29 |
| 6566.T | Kaname Kogyo Co Ltd | 0.06 | 0.33 | 0.32 |
| Low | High | |
| Unlevered beta | 0.39 | 0.48 |
| Relevered beta | 0.72 | 0.87 |
| Adjusted relevered beta | 0.81 | 0.91 |
4809.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 4809.T:
cost_of_equity (7.65%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.81) + 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.