4849.T WACC - Weighted Average Cost of Capital
The WACC of En-Japan Inc (4849.T) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.1% | 7.1% |
| Tax rate | 31.9% - 33.9% | 32.9% |
| Cost of debt | 4.0% - 11.8% | 7.9% |
| WACC | 6.1% - 8.1% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.76 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.1% |
| Tax rate | 31.9% | 33.9% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 11.8% |
| After-tax WACC | 6.1% | 8.1% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4849.T | En-Japan Inc | 0.01 | 0.62 | 0.62 |
| 2146.T | UT Group Co Ltd | 0.08 | 0.97 | 0.92 |
| 2154.T | Benext Group Inc | 0.01 | 0.67 | 0.66 |
| 2175.T | SMS Co Ltd | 0.06 | 0.83 | 0.79 |
| 2462.T | LIKE Inc | 0.45 | 0.51 | 0.4 |
| 2471.T | S-Pool Inc | 0.89 | 0.89 | 0.56 |
| 2475.T | WDB Holdings Co Ltd | 1.15 | 0.73 | 0.41 |
| 4433.T | HITO-Communications Holdings Inc | 0.51 | 0.48 | 0.36 |
| 4641.T | Altech Corp | 0 | 0.81 | 0.81 |
| 4848.T | Fullcast Holdings Co Ltd | 0.02 | 0.68 | 0.68 |
| Low | High | |
| Unlevered beta | 0.6 | 0.67 |
| Relevered beta | 0.64 | 0.7 |
| Adjusted relevered beta | 0.76 | 0.8 |
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 (7.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.76) + 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.