7161.T WACC - Weighted Average Cost of Capital
The WACC of Jimoto Holdings Inc (7161.T) is 4.7%.
| Range | Selected | |
| Cost of equity | 10.1% - 16.8% | 13.45% |
| Tax rate | 22.3% - 29.3% | 25.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.5% - 4.9% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.43 | 2.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 16.8% |
| Tax rate | 22.3% | 29.3% |
| Debt/Equity ratio | 8.88 | 8.88 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.5% | 4.9% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7161.T | Jimoto Holdings Inc | 8.88 | 0.65 | 0.08 |
| 8337.T | Chiba Kogyo Bank Ltd | 0.38 | 1.56 | 1.2 |
| 8338.T | Tsukuba Bank Ltd | 7.65 | 1.44 | 0.21 |
| 8342.T | Aomori Bank Ltd | 16.39 | 0.72 | 0.05 |
| 8343.T | Akita Bank Ltd | 1.53 | 1.03 | 0.47 |
| 8395.T | Bank of Saga Ltd | 1.33 | 1.18 | 0.58 |
| 8521.T | Nagano Bank Ltd | 9.44 | 0.37 | 0.04 |
| 8550.T | Tochigi Bank Ltd | 0.72 | 1.41 | 0.91 |
| 8558.T | Towa Bank Ltd | 4.34 | 0.96 | 0.22 |
| 8713.T | Fidea Holdings Co Ltd | 3.77 | 0.82 | 0.21 |
| Low | High | |
| Unlevered beta | 0.21 | 0.32 |
| Relevered beta | 1.64 | 2.52 |
| Adjusted relevered beta | 1.43 | 2.02 |
7161.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 7161.T:
cost_of_equity (13.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.43) + 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.