7062.T WACC - Weighted Average Cost of Capital

The WACC of Fureasu Co Ltd (7062.T) is 9.0%.

The Cost of Equity of Fureasu Co Ltd (7062.T) is 9.40%.

The Cost of Debt of Fureasu Co Ltd (7062.T) is 12.70%.

	Range	Selected
Cost of equity	6.60% - 12.20%	9.40%
Tax rate	27.70% - 30.60%	29.15%
Cost of debt	4.00% - 21.40%	12.70%
WACC	4.2% - 13.9%	9.0%

WACC

7062.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.86	1.37

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	12.20%

Tax rate	27.70%	30.60%
Debt/Equity ratio	1.95	1.95
Cost of debt	4.00%	21.40%

After-tax WACC	4.2%	13.9%


Selected WACC	9.0%

7062.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 7062.T:

cost_of_equity (9.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.86) + 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.