6054.T WACC - Weighted Average Cost of Capital
The WACC of Livesense Inc (6054.T) is 8.4%.
| Range | Selected | |
| Cost of equity | 6.7% - 10.1% | 8.4% |
| Tax rate | 2.7% - 11.6% | 7.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.7% - 10.1% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.87 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 10.1% |
| Tax rate | 2.7% | 11.6% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.7% | 10.1% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6054.T | Livesense Inc | 0 | 0.63 | 0.63 |
| 3645.T | Medical Net Inc | 0.3 | 0.61 | 0.47 |
| 3646.T | Ekitan & Co Ltd | 0.17 | 0.58 | 0.5 |
| 3989.T | Sharingtechnology Inc | 0.02 | 0.87 | 0.85 |
| 4399.T | Kufu Co Inc | 0.11 | 1.43 | 1.29 |
| 4484.T | Lancers Inc | 0.19 | 1.21 | 1.02 |
| 6048.T | DesignOne Japan Inc | 0.04 | 1.33 | 1.28 |
| 6180.T | GMO Media Inc | 0 | 0.72 | 0.72 |
| 6552.T | GameWith Inc | 0.09 | 1.54 | 1.41 |
| 7047.T | Port Inc | 0.26 | 1.94 | 1.55 |
| Low | High | |
| Unlevered beta | 0.8 | 1.12 |
| Relevered beta | 0.81 | 1.13 |
| Adjusted relevered beta | 0.87 | 1.09 |
6054.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 6054.T:
cost_of_equity (8.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.87) + 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.