6558.T
Cookbiz Co Ltd
Price:  
605 
JPY
Volume:  
66,300
Japan | Professional Services

6558.T WACC - Weighted Average Cost of Capital

The WACC of Cookbiz Co Ltd (6558.T) is 7.5%.

The Cost of Equity of Cookbiz Co Ltd (6558.T) is 9.65%.
The Cost of Debt of Cookbiz Co Ltd (6558.T) is 5.5%.

RangeSelected
Cost of equity7.6% - 11.7%9.65%
Tax rate5.5% - 7.0%6.25%
Cost of debt4.0% - 7.0%5.5%
WACC5.7% - 9.2%7.5%
WACC

6558.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta1.021.31
Additional risk adjustments0.0%0.5%
Cost of equity7.6%11.7%
Tax rate5.5%7.0%
Debt/Equity ratio
0.950.95
Cost of debt4.0%7.0%
After-tax WACC5.7%9.2%
Selected WACC7.5%

6558.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 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.