The WACC of Axell Corp (6730.T) is 8.2%.
Range | Selected | |
Cost of equity | 11.0% - 13.9% | 12.45% |
Tax rate | 17.6% - 23.2% | 20.4% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 7.6% - 8.9% | 8.2% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 1.57 | 1.62 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 11.0% | 13.9% |
Tax rate | 17.6% | 23.2% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 7.6% | 8.9% |
Selected WACC | 8.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
6730.T | Axell Corp | 0.88 | 0.99 | 0.58 |
078350.KQ | Hanyang Digitech Co Ltd | 0.11 | 2.06 | 1.89 |
3445.T | RS Technologies Co Ltd | 0.16 | 1.25 | 1.11 |
3591.TW | Edison Opto Corp | 0.1 | 1.12 | 1.04 |
4238.T | Miraial Co Ltd | 0 | 1.14 | 1.14 |
6613.T | QD Laser Inc | 0 | 1.03 | 1.03 |
6616.T | Torex Semiconductor Ltd | 0.9 | 1.52 | 0.89 |
6723.T | Renesas Electronics Corp | 0.41 | 1.69 | 1.27 |
6832.T | Aoi Electronics Co Ltd | 0.09 | 1.08 | 1.01 |
6941.T | Yamaichi Electronics Co Ltd | 0.12 | 1.07 | 0.98 |
7836.T | AVIX Inc | 0.17 | 0.46 | 0.4 |
Low | High | |
Unlevered beta | 1.01 | 1.04 |
Relevered beta | 1.85 | 1.93 |
Adjusted relevered beta | 1.57 | 1.62 |
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 6730.T:
cost_of_equity (12.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.57) + 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.