4847.T WACC - Weighted Average Cost of Capital
The WACC of Intelligent Wave Inc (4847.T) is 6.8%.
| Range | Selected | |
| Cost of equity | 5.6% - 8.1% | 6.85% |
| Tax rate | 28.6% - 30.0% | 29.3% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.6% - 8.1% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.69 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 8.1% |
| Tax rate | 28.6% | 30.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.6% | 8.1% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4847.T | Intelligent Wave Inc | 0 | 0.87 | 0.87 |
| 2497.T | United Inc | 0.01 | 0.57 | 0.57 |
| 3627.T | Jns Holdings Inc | 0.71 | 0.87 | 0.58 |
| 3677.T | System Information Co Ltd | 0.02 | 0.04 | 0.04 |
| 3771.T | System Research Co Ltd | 0.04 | 1.13 | 1.1 |
| 3773.T | Advanced Media Inc | 0.08 | 1.04 | 0.98 |
| 3976.T | Shanon Inc | 0.63 | 0.45 | 0.31 |
| 4060.T | Rakumo Inc | 0.08 | 0.46 | 0.44 |
| 4699.T | Uchida Esco Co Ltd | 0.03 | 1.17 | 1.14 |
| 6888.T | Acmos Inc | 0.09 | 0.54 | 0.5 |
| Low | High | |
| Unlevered beta | 0.54 | 0.69 |
| Relevered beta | 0.54 | 0.7 |
| Adjusted relevered beta | 0.69 | 0.8 |
4847.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 4847.T:
cost_of_equity (6.85%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.69) + 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.