4929.T
Adjuvant Cosme Japan Co Ltd
Price:  
787 
JPY
Volume:  
14,300
Japan | Personal Products

4929.T WACC - Weighted Average Cost of Capital

The WACC of Adjuvant Cosme Japan Co Ltd (4929.T) is 5.1%.

The Cost of Equity of Adjuvant Cosme Japan Co Ltd (4929.T) is 5.1%.
The Cost of Debt of Adjuvant Cosme Japan Co Ltd (4929.T) is 5%.

RangeSelected
Cost of equity4.3% - 5.9%5.1%
Tax rate27.5% - 47.5%37.5%
Cost of debt5.0% - 5.0%5%
WACC4.3% - 5.9%5.1%
WACC

4929.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.480.49
Additional risk adjustments0.0%0.5%
Cost of equity4.3%5.9%
Tax rate27.5%47.5%
Debt/Equity ratio
00
Cost of debt5.0%5.0%
After-tax WACC4.3%5.9%
Selected WACC5.1%

4929.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 4929.T:

cost_of_equity (5.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.48) + 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.