7071.T WACC - Weighted Average Cost of Capital
The WACC of Amvis Holdings Inc (7071.T) is 5.1%.
| Range | Selected | |
| Cost of equity | 5.1% - 8.1% | 6.6% |
| Tax rate | 29.5% - 29.8% | 29.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.2% - 6.0% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.61 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 8.1% |
| Tax rate | 29.5% | 29.8% |
| Debt/Equity ratio | 0.71 | 0.71 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.2% | 6.0% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7071.T | Amvis Holdings Inc | 0.71 | 0.68 | 0.46 |
| 2374.T | Saint-Care Holding Corp | 0.29 | 0.57 | 0.47 |
| 2398.T | Tsukui Holdings Corp | 0.59 | 1.56 | 1.1 |
| 6545.T | Internet Infinity Inc | 0.27 | 0.63 | 0.53 |
| 7061.T | Japan Hospice Holdings Inc | 1.4 | 1.26 | 0.63 |
| 8769.T | Advantage Risk Management Co Ltd | 0.03 | 0.31 | 0.3 |
| A50.SI | Thomson Medical Group Ltd | 1.03 | 0.43 | 0.25 |
| RAM.BK | Ramkhamhaeng Hospital PCL | 0.52 | 0.29 | 0.21 |
| SKR.BK | Sikarin PCL | 0.06 | 0.15 | 0.14 |
| SVH.BK | Samitivej PCL | 0.01 | 0.23 | 0.23 |
| Low | High | |
| Unlevered beta | 0.28 | 0.46 |
| Relevered beta | 0.42 | 0.7 |
| Adjusted relevered beta | 0.61 | 0.8 |
7071.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 7071.T:
cost_of_equity (6.60%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.61) + 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.