4849.T WACC - Weighted Average Cost of Capital

The WACC of En-Japan Inc (4849.T) is 6.8%.

The Cost of Equity of En-Japan Inc (4849.T) is 6.85%.

The Cost of Debt of En-Japan Inc (4849.T) is 7.25%.

	Range	Selected
Cost of equity	5.80% - 7.90%	6.85%
Tax rate	32.30% - 33.90%	33.10%
Cost of debt	4.00% - 10.50%	7.25%
WACC	5.8% - 7.8%	6.8%

WACC

4849.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.73	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.80%	7.90%

Tax rate	32.30%	33.90%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	10.50%

After-tax WACC	5.8%	7.8%


Selected WACC	6.8%

4849.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 4849.T:

cost_of_equity (6.85%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.73) + 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.