7059.T WACC - Weighted Average Cost of Capital
The WACC of Copro-Holdings Co Ltd (7059.T) is 6.1%.
| Range | Selected | |
| Cost of equity | 7.7% - 11.2% | 9.45% |
| Tax rate | 32.7% - 34.1% | 33.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.2% - 7.1% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.03 | 1.23 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.7% | 11.2% |
| Tax rate | 32.7% | 34.1% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.2% | 7.1% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7059.T | Copro-Holdings Co Ltd | 1.19 | 1.1 | 0.62 |
| 2479.T | JTec Corp | 0.07 | 0.93 | 0.89 |
| 4318.T | Quick Co Ltd | 0 | 0.9 | 0.9 |
| 4336.T | Crie Anabuki Inc | 0.04 | 1.13 | 1.1 |
| 6070.T | Careerlink Co Ltd | 0.04 | 0.62 | 0.6 |
| 6198.T | Career Co Ltd | 0.29 | 0.39 | 0.33 |
| 6539.T | Matching Service Japan Co Ltd | 0 | 0.54 | 0.54 |
| 6554.T | SUS Co Ltd | 0 | 0.64 | 0.64 |
| 6575.T | Human Associates Holdings Inc | 0.19 | 1.12 | 0.99 |
| 7041.T | CRG Holdings Co Ltd | 5.06 | 0.15 | 0.03 |
| 7781.T | Hirayama Holdings Co Ltd | 0.2 | 0.86 | 0.76 |
| Low | High | |
| Unlevered beta | 0.62 | 0.76 |
| Relevered beta | 1.04 | 1.34 |
| Adjusted relevered beta | 1.03 | 1.23 |
7059.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 7059.T:
cost_of_equity (9.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.03) + 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.