5020.T WACC - Weighted Average Cost of Capital

The WACC of Eneos Holdings Inc (5020.T) is 5.1%.

The Cost of Equity of Eneos Holdings Inc (5020.T) is 7.70%.

The Cost of Debt of Eneos Holdings Inc (5020.T) is 4.50%.

	Range	Selected
Cost of equity	6.10% - 9.30%	7.70%
Tax rate	24.10% - 29.00%	26.55%
Cost of debt	4.00% - 5.00%	4.50%
WACC	4.3% - 6.0%	5.1%

WACC

5020.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.77	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.10%	9.30%

Tax rate	24.10%	29.00%
Debt/Equity ratio	1.39	1.39
Cost of debt	4.00%	5.00%

After-tax WACC	4.3%	6.0%


Selected WACC	5.1%

5020.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 5020.T:

cost_of_equity (7.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.77) + 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.