6070.T
Careerlink Co Ltd
Price:  
2,136.00 
JPY
Volume:  
17,900.00
Japan | Professional Services
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

6070.T WACC - Weighted Average Cost of Capital

The WACC of Careerlink Co Ltd (6070.T) is 7.0%.

The Cost of Equity of Careerlink Co Ltd (6070.T) is 7.20%.
The Cost of Debt of Careerlink Co Ltd (6070.T) is 4.25%.

Range Selected
Cost of equity 6.10% - 8.30% 7.20%
Tax rate 25.50% - 27.30% 26.40%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.0% - 8.1% 7.0%
WACC

6070.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 0.82
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 8.30%
Tax rate 25.50% 27.30%
Debt/Equity ratio 0.04 0.04
Cost of debt 4.00% 4.50%
After-tax WACC 6.0% 8.1%
Selected WACC 7.0%

6070.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 6070.T:

cost_of_equity (7.20%) = 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.