The WACC of Cookbiz Co Ltd (6558.T) is 7.5%.
Range | Selected | |
Cost of equity | 7.6% - 11.7% | 9.65% |
Tax rate | 5.5% - 7.0% | 6.25% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 5.7% - 9.2% | 7.5% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 1.02 | 1.31 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.6% | 11.7% |
Tax rate | 5.5% | 7.0% |
Debt/Equity ratio | 0.95 | 0.95 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 5.7% | 9.2% |
Selected WACC | 7.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
6558.T | Cookbiz Co Ltd | 0.95 | 0.86 | 0.45 |
2479.T | JTec Corp | 0.04 | 0.93 | 0.89 |
4318.T | Quick Co Ltd | 0 | 0.96 | 0.95 |
4336.T | Crie Anabuki Inc | 0.04 | 1.13 | 1.09 |
6198.T | Career Co Ltd | 0.3 | 0.4 | 0.32 |
6539.T | Matching Service Japan Co Ltd | 0.01 | 0.56 | 0.55 |
6554.T | SUS Co Ltd | 0 | 0.69 | 0.69 |
6575.T | Human Associates Holdings Inc | 0.19 | 1.12 | 0.95 |
7041.T | CRG Holdings Co Ltd | 4.7 | 0.16 | 0.03 |
7080.T | Sportsfield Co Ltd | 0.03 | 0.54 | 0.53 |
Low | High | |
Unlevered beta | 0.54 | 0.77 |
Relevered beta | 1.03 | 1.46 |
Adjusted relevered beta | 1.02 | 1.31 |
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 6558.T:
cost_of_equity (9.65%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.02) + 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.