6005.T WACC - Weighted Average Cost of Capital

The WACC of Miura Co Ltd (6005.T) is 7.9%.

The Cost of Equity of Miura Co Ltd (6005.T) is 9.25%.

The Cost of Debt of Miura Co Ltd (6005.T) is 5.35%.

	Range	Selected
Cost of equity	7.70% - 10.80%	9.25%
Tax rate	27.50% - 28.50%	28.00%
Cost of debt	4.00% - 6.70%	5.35%
WACC	6.5% - 9.3%	7.9%

WACC

6005.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.03	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	10.80%

Tax rate	27.50%	28.50%
Debt/Equity ratio	0.33	0.33
Cost of debt	4.00%	6.70%

After-tax WACC	6.5%	9.3%


Selected WACC	7.9%

6005.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 6005.T:

cost_of_equity (9.25%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.03) + 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.