6093.T WACC - Weighted Average Cost of Capital
The WACC of Escrow Agent Japan Inc (6093.T) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.4% | 7.2% |
| Tax rate | 34.4% - 34.7% | 34.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.0% - 8.4% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.75 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.4% |
| Tax rate | 34.4% | 34.7% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.0% | 8.4% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6093.T | Escrow Agent Japan Inc | 0.01 | 0.77 | 0.77 |
| 2195.T | Amita Holdings Co Ltd | 0.35 | 0.89 | 0.72 |
| 2438.T | Asukanet Co Ltd | 0 | 0.81 | 0.81 |
| 3461.T | Palma Co Ltd | 0.2 | 1.05 | 0.93 |
| 4351.T | Yamada Servicer Synthetic Office Co Ltd | 0.56 | 0.16 | 0.11 |
| 4659.T | AJIS Co Ltd | 0.01 | 0.25 | 0.25 |
| 6182.T | Rozetta Corp | 0.29 | 0.92 | 0.77 |
| 7087.T | Willtec Co Ltd | 0.14 | 0.53 | 0.49 |
| 9780.T | Harima B.Stem Corp | 0.11 | 0.48 | 0.45 |
| A33.SI | Blumont Group Ltd | 0.25 | 1.32 | 1.13 |
| Low | High | |
| Unlevered beta | 0.63 | 0.77 |
| Relevered beta | 0.63 | 0.78 |
| Adjusted relevered beta | 0.75 | 0.85 |
6093.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 6093.T:
cost_of_equity (7.20%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.75) + 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.