The WACC of ALiNK Internet INC (7077.T) is 5.9%.
Range | Selected | |
Cost of equity | 7.2% - 9.6% | 8.4% |
Tax rate | 31.4% - 31.9% | 31.65% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.3% - 6.5% | 5.9% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.94 | 1.01 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.2% | 9.6% |
Tax rate | 31.4% | 31.9% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.3% | 6.5% |
Selected WACC | 5.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
7077.T | ALiNK Internet INC | 1.04 | 0.36 | 0.21 |
2978.T | Tsukuruba Inc | 0.31 | 0.3 | 0.24 |
3645.T | Medical Net Inc | 0.32 | 0.59 | 0.49 |
3646.T | Ekitan & Co Ltd | 0.16 | 0.63 | 0.57 |
3691.T | Realworld Inc | 0.18 | 0.73 | 0.65 |
3979.T | Uluru Co Ltd | 0.02 | 0.59 | 0.58 |
4014.T | Karadanote Inc | 0.09 | 0.84 | 0.79 |
4387.T | ZUU Co Ltd | 0.08 | 0.48 | 0.46 |
4445.T | Living Technologies Inc | 0.32 | 0.77 | 0.64 |
6048.T | DesignOne Japan Inc | 0.05 | 1.34 | 1.29 |
7082.T | Jimoty Inc | 0.01 | 0.52 | 0.51 |
Low | High | |
Unlevered beta | 0.51 | 0.58 |
Relevered beta | 0.91 | 1.01 |
Adjusted relevered beta | 0.94 | 1.01 |
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 7077.T:
cost_of_equity (8.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.94) + 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.