7033.T WACC - Weighted Average Cost of Capital
The WACC of Management Solutions Co Ltd (7033.T) is 7.4%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.7% | 7.5% |
| Tax rate | 26.7% - 27.7% | 27.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.3% - 8.6% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.8 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.7% |
| Tax rate | 26.7% | 27.7% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.3% | 8.6% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7033.T | Management Solutions Co Ltd | 0.02 | 1.28 | 1.27 |
| 3967.T | Eltes Co Ltd | 0.99 | 1 | 0.58 |
| 6087.T | Abist Co Ltd | 0 | 0.27 | 0.27 |
| 6171.T | CE Management Integrated Laboratory Co Ltd | 0.13 | 0.49 | 0.44 |
| 6560.T | LTS Inc | 0.38 | 0.92 | 0.72 |
| 7034.T | Prored Partners Co Ltd | 0.15 | 1.3 | 1.17 |
| 7038.T | Frontier Management Inc | 0.18 | 1.09 | 0.97 |
| 7039.T | Bridge International Corp | 0.06 | 0.72 | 0.68 |
| 7066.T | Peers Co Ltd | 0.18 | 0.8 | 0.7 |
| 9644.T | Tanabe Consulting Co Ltd | 0.01 | 1.21 | 1.21 |
| Low | High | |
| Unlevered beta | 0.7 | 0.82 |
| Relevered beta | 0.7 | 0.82 |
| Adjusted relevered beta | 0.8 | 0.88 |
7033.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 7033.T:
cost_of_equity (7.50%) = 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.