7080.T WACC - Weighted Average Cost of Capital
The WACC of Sportsfield Co Ltd (7080.T) is 7.8%.
| Range | Selected | |
| Cost of equity | 6.7% - 9.1% | 7.9% |
| Tax rate | 31.1% - 33.0% | 32.05% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.6% - 9.0% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.87 | 0.95 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 9.1% |
| Tax rate | 31.1% | 33.0% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.6% | 9.0% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7080.T | Sportsfield Co Ltd | 0.03 | 0.49 | 0.48 |
| 2479.T | JTec Corp | 0.04 | 0.92 | 0.9 |
| 4318.T | Quick Co Ltd | 0 | 0.91 | 0.9 |
| 4336.T | Crie Anabuki Inc | 0.04 | 1.13 | 1.1 |
| 4641.T | Altech Corp | 0 | 0.79 | 0.79 |
| 6554.T | SUS Co Ltd | 0 | 0.65 | 0.65 |
| 6558.T | Cookbiz Co Ltd | 0.98 | 0.87 | 0.52 |
| 6575.T | Human Associates Holdings Inc | 0.19 | 1.12 | 0.99 |
| 7088.T | Forum Engineering Inc | 0 | 0.9 | 0.9 |
| 7781.T | Hirayama Holdings Co Ltd | 0.2 | 0.87 | 0.77 |
| Low | High | |
| Unlevered beta | 0.78 | 0.9 |
| Relevered beta | 0.81 | 0.93 |
| Adjusted relevered beta | 0.87 | 0.95 |
7080.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 7080.T:
cost_of_equity (7.90%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.87) + 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.