6094.T WACC - Weighted Average Cost of Capital

The WACC of FreakOut Holdings inc (6094.T) is 7.2%.

The Cost of Equity of FreakOut Holdings inc (6094.T) is 13.10%.

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

	Range	Selected
Cost of equity	11.20% - 15.00%	13.10%
Tax rate	29.90% - 32.40%	31.15%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.9% - 8.6%	7.2%

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	1.6	1.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	15.00%

Tax rate	29.90%	32.40%
Debt/Equity ratio	1.69	1.69
Cost of debt	4.00%	7.00%

After-tax WACC	5.9%	8.6%


Selected WACC	7.2%

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 (13.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.6) + 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.