4838.T WACC - Weighted Average Cost of Capital
The WACC of Space Shower Networks Inc (4838.T) is 5.9%.
| Range | Selected | |
| Cost of equity | 4.6% - 7.2% | 5.9% |
| Tax rate | 27.7% - 30.6% | 29.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.6% - 7.2% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.52 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.6% | 7.2% |
| Tax rate | 27.7% | 30.6% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.6% | 7.2% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4838.T | Space Shower Networks Inc | 0 | 0.43 | 0.43 |
| 4676.T | Fuji Media Holdings Inc | 0.47 | 0.04 | 0.03 |
| 4839.T | Wowow Inc | 0 | 0.28 | 0.28 |
| 9401.T | TBS Holdings Inc | 0.01 | 0.83 | 0.83 |
| 9404.T | Nippon Television Holdings Inc | 0.01 | 0.64 | 0.63 |
| 9405.T | Asahi Broadcasting Group Holdings Corp | 0.51 | 0.36 | 0.27 |
| 9409.T | TV Asahi Holdings Corp | 0.01 | 0.78 | 0.78 |
| 9413.T | TV Tokyo Holdings Corp | 0.06 | 0.65 | 0.63 |
| 9414.T | Nippon BS Broadcasting Corp | 0 | 0.22 | 0.22 |
| VIVA.JK | Visi Media Asia Tbk PT | 18.8 | 0.12 | 0.01 |
| Low | High | |
| Unlevered beta | 0.28 | 0.51 |
| Relevered beta | 0.28 | 0.51 |
| Adjusted relevered beta | 0.52 | 0.67 |
4838.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 4838.T:
cost_of_equity (5.90%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.52) + 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.