7161.T
Jimoto Holdings Inc
Price:  
348 
JPY
Volume:  
50,600
Japan | Banks

7161.T WACC - Weighted Average Cost of Capital

The WACC of Jimoto Holdings Inc (7161.T) is 4.7%.

The Cost of Equity of Jimoto Holdings Inc (7161.T) is 13.45%.
The Cost of Debt of Jimoto Holdings Inc (7161.T) is 5%.

RangeSelected
Cost of equity10.1% - 16.8%13.45%
Tax rate22.3% - 29.3%25.8%
Cost of debt5.0% - 5.0%5%
WACC4.5% - 4.9%4.7%
WACC

7161.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta1.432.02
Additional risk adjustments0.0%0.5%
Cost of equity10.1%16.8%
Tax rate22.3%29.3%
Debt/Equity ratio
8.888.88
Cost of debt5.0%5.0%
After-tax WACC4.5%4.9%
Selected WACC4.7%

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.