5985.T WACC - Weighted Average Cost of Capital
The WACC of Suncall Corp (5985.T) is 4.8%.
| Range | Selected | |
| Cost of equity | 6.4% - 10.5% | 8.45% |
| Tax rate | 38.9% - 46.0% | 42.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.0% - 5.6% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.82 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 10.5% |
| Tax rate | 38.9% | 46.0% |
| Debt/Equity ratio | 1.51 | 1.51 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.0% | 5.6% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5985.T | Suncall Corp | 1.51 | 0.53 | 0.28 |
| 5988.T | Piolax Inc | 0.01 | 1.01 | 1.01 |
| 5994.T | Fine Sinter Co Ltd | 5.18 | 0.5 | 0.12 |
| 6408.T | Ogura Clutch Co Ltd | 3.49 | 0.17 | 0.05 |
| 6493.T | Nittan Valve Co Ltd | 1.36 | 0.82 | 0.45 |
| 6899.T | Asti Corp | 2.17 | 1.05 | 0.46 |
| 6904.T | Harada Industry Co Ltd | 1.74 | 0.41 | 0.2 |
| 7235.T | Tokyo Radiator Mfg Co Ltd | 0.94 | 1 | 0.64 |
| 7254.T | Univance Corp | 0.27 | 1.67 | 1.44 |
| 7299.T | Fuji Oozx Inc | 0.15 | 0.97 | 0.89 |
| Low | High | |
| Unlevered beta | 0.38 | 0.53 |
| Relevered beta | 0.73 | 1.19 |
| Adjusted relevered beta | 0.82 | 1.13 |
5985.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 5985.T:
cost_of_equity (8.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.82) + 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.