6419.T WACC - Weighted Average Cost of Capital
The WACC of Mars Group Holdings Corp (6419.T) is 7.8%.
| Range | Selected | |
| Cost of equity | 6.3% - 9.4% | 7.85% |
| Tax rate | 34.7% - 37.4% | 36.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.3% - 9.4% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.8 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 9.4% |
| Tax rate | 34.7% | 37.4% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.3% | 9.4% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6419.T | Mars Group Holdings Corp | 0.01 | 0.56 | 0.56 |
| 002105.SZ | HL Corp Shenzhen | 0.12 | 1.39 | 1.29 |
| 2767.T | Fields Corp | 0.11 | 1.25 | 1.17 |
| 300247.SZ | Youngy Health Co Ltd | 0 | 1.64 | 1.63 |
| 7816.T | Snow Peak Inc | 0.3 | 1.11 | 0.93 |
| 7841.T | Endo Manufacturing Co Ltd | 0.03 | 0.68 | 0.67 |
| 7847.T | Graphite Design Inc | 0.17 | 0.48 | 0.44 |
| 7983.T | Miroku Corp | 1.7 | 0.58 | 0.27 |
| 7991.T | Mamiya-OP Co Ltd | 0.6 | 0.99 | 0.72 |
| 8022.T | Mizuno Corp | 0.06 | 1.09 | 1.05 |
| Low | High | |
| Unlevered beta | 0.7 | 0.98 |
| Relevered beta | 0.7 | 0.99 |
| Adjusted relevered beta | 0.8 | 0.99 |
6419.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 6419.T:
cost_of_equity (7.85%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.8) + 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.