6198.T WACC - Weighted Average Cost of Capital

The WACC of Career Co Ltd (6198.T) is 6.1%.

The Cost of Equity of Career Co Ltd (6198.T) is 6.15%.

The Cost of Debt of Career Co Ltd (6198.T) is 8.60%.

	Range	Selected
Cost of equity	4.90% - 7.40%	6.15%
Tax rate	27.70% - 30.60%	29.15%
Cost of debt	4.00% - 13.20%	8.60%
WACC	4.3% - 7.9%	6.1%

WACC

6198.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.58	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	7.40%

Tax rate	27.70%	30.60%
Debt/Equity ratio	0.45	0.45
Cost of debt	4.00%	13.20%

After-tax WACC	4.3%	7.9%


Selected WACC	6.1%

6198.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 6198.T:

cost_of_equity (6.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.58) + 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.