6094.T WACC - Weighted Average Cost of Capital

The WACC of FreakOut Holdings inc (6094.T) is 7.1%.

The Cost of Equity of FreakOut Holdings inc (6094.T) is 12.45%.

The Cost of Debt of FreakOut Holdings inc (6094.T) is 5.50%.

	Range	Selected
Cost of equity	11.10% - 13.80%	12.45%
Tax rate	29.90% - 32.40%	31.15%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.0% - 8.2%	7.1%

WACC

6094.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.59	1.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	13.80%

Tax rate	29.90%	32.40%
Debt/Equity ratio	1.64	1.64
Cost of debt	4.00%	7.00%

After-tax WACC	6.0%	8.2%


Selected WACC	7.1%

6094.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 6094.T:

cost_of_equity (12.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.59) + 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.