7087.T WACC - Weighted Average Cost of Capital
The WACC of Willtec Co Ltd (7087.T) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.5% | 7.15% |
| Tax rate | 37.6% - 38.9% | 38.25% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.3% - 7.5% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.72 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.5% |
| Tax rate | 37.6% | 38.9% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.3% | 7.5% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7087.T | Willtec Co Ltd | 0.2 | 0.53 | 0.47 |
| 2304.T | CSS Holdings Ltd | 0.1 | 0.76 | 0.71 |
| 3461.T | Palma Co Ltd | 0.2 | 1.04 | 0.93 |
| 4290.T | Prestige International Inc | 0 | 0.56 | 0.56 |
| 4351.T | Yamada Servicer Synthetic Office Co Ltd | 0.56 | 0.15 | 0.11 |
| 4659.T | AJIS Co Ltd | 0.01 | 0.27 | 0.27 |
| 5690.T | Rever Holdings Corp | 0.23 | 1 | 0.88 |
| 5698.T | Envipro Holdings Inc | 0.6 | 0.93 | 0.68 |
| 6093.T | Escrow Agent Japan Inc | 0.01 | 0.78 | 0.77 |
| 9780.T | Harima B.Stem Corp | 0.11 | 0.47 | 0.44 |
| Low | High | |
| Unlevered beta | 0.52 | 0.69 |
| Relevered beta | 0.58 | 0.78 |
| Adjusted relevered beta | 0.72 | 0.85 |
7087.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 7087.T:
cost_of_equity (7.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.72) + 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.