6045.T WACC - Weighted Average Cost of Capital
The WACC of Rentracks Co Ltd (6045.T) is 5.1%.
| Range | Selected | |
| Cost of equity | 5.3% - 7.4% | 6.35% |
| Tax rate | 43.3% - 45.5% | 44.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.3% - 5.8% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.63 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 7.4% |
| Tax rate | 43.3% | 45.5% |
| Debt/Equity ratio | 0.46 | 0.46 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.3% | 5.8% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6045.T | Rentracks Co Ltd | 0.46 | 1.19 | 0.94 |
| 2156.T | Saylor Advertising Inc | 0.34 | -0.22 | -0.19 |
| 2411.T | Gendai Agency Inc | 0.14 | 0.32 | 0.29 |
| 2487.T | CDG Co Ltd | 0 | 0.3 | 0.3 |
| 4760.T | Alpha Co Ltd | 1.2 | 0.72 | 0.43 |
| 6038.T | IID Inc | 0.19 | 0.23 | 0.2 |
| 7036.T | eMnet Japan Co Ltd | 0 | 0.58 | 0.58 |
| 7050.T | Frontier International Inc | 0.04 | 0.41 | 0.4 |
| 7067.T | Branding Technology Inc | 0.08 | 0.81 | 0.77 |
| 9466.T | Aidma Marketing Communication Corp | 0.13 | 0.49 | 0.46 |
| Low | High | |
| Unlevered beta | 0.36 | 0.44 |
| Relevered beta | 0.45 | 0.55 |
| Adjusted relevered beta | 0.63 | 0.7 |
6045.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 6045.T:
cost_of_equity (6.35%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.63) + 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.