7213.T WACC - Weighted Average Cost of Capital
The WACC of Lecip Holdings Corp (7213.T) is 8.0%.
| Range | Selected | |
| Cost of equity | 7.9% - 10.7% | 9.3% |
| Tax rate | 27.7% - 30.6% | 29.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.9% - 9.2% | 8.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.06 | 1.16 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.9% | 10.7% |
| Tax rate | 27.7% | 30.6% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.9% | 9.2% |
| Selected WACC | 8.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7213.T | Lecip Holdings Corp | 0.25 | 0.46 | 0.39 |
| 6418.T | Japan Cash Machine Co Ltd | 0.39 | 1.21 | 0.95 |
| 6639.T | Contec Co Ltd | 0.17 | 1.67 | 1.49 |
| 6709.T | Meisei Electric Co Ltd | 0.01 | 1.02 | 1.02 |
| 6743.T | Daido Signal Co Ltd | 0.69 | 0.54 | 0.36 |
| 6771.T | Ikegami Tsushinki Co Ltd | 2.17 | 0.78 | 0.31 |
| 6777.T | Santec Corp | 0.04 | 1.63 | 1.59 |
| 6850.T | Chino Corp | 0.12 | 0.98 | 0.9 |
| 6914.T | Optex Group Co Ltd | 0.16 | 1.25 | 1.13 |
| 6946.T | Nippon Avionics Co Ltd | 0.07 | 1.91 | 1.82 |
| Low | High | |
| Unlevered beta | 0.93 | 1.06 |
| Relevered beta | 1.09 | 1.24 |
| Adjusted relevered beta | 1.06 | 1.16 |
7213.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 7213.T:
cost_of_equity (9.30%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.06) + 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.