7091.T WACC - Weighted Average Cost of Capital
The WACC of Living Platform Ltd (7091.T) is 3.8%.
| Range | Selected | |
| Cost of equity | 4.2% - 6.6% | 5.4% |
| Tax rate | 29.8% - 41.9% | 35.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 3.3% - 4.2% | 3.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.46 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.2% | 6.6% |
| Tax rate | 29.8% | 41.9% |
| Debt/Equity ratio | 1.58 | 1.58 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 3.3% | 4.2% |
| Selected WACC | 3.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7091.T | Living Platform Ltd | 1.58 | 0.25 | 0.12 |
| 1419.HK | Human Health Holdings Ltd | 0.48 | 0.06 | 0.05 |
| 1H3.SI | Clearbridge Health Ltd | 0.63 | -0.48 | -0.34 |
| 2425.T | Care Service Co Ltd | 0.02 | 0.55 | 0.54 |
| 2435.T | Cedar Co Ltd | 5.95 | 1.12 | 0.22 |
| 4355.T | Longlife Holding Co Ltd | 4.15 | 0.65 | 0.17 |
| 5NG.SI | Healthway Medical Corporation Ltd | 0.1 | -0.64 | -0.6 |
| 6063.T | Emergency Assistance Japan Co Ltd | 0.47 | 1.09 | 0.82 |
| 6077.T | N Field Co Ltd | 0 | 1.65 | 1.65 |
| P8A.SI | Cordlife Group Ltd | 0.03 | 0.03 | 0.03 |
| Low | High | |
| Unlevered beta | 0.09 | 0.19 |
| Relevered beta | 0.19 | 0.39 |
| Adjusted relevered beta | 0.46 | 0.59 |
7091.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 7091.T:
cost_of_equity (5.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.46) + 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.