7338.T WACC - Weighted Average Cost of Capital
The WACC of INV Inc (7338.T) is 6.4%.
| Range | Selected | |
| Cost of equity | 6.7% - 9.6% | 8.15% |
| Tax rate | 32.4% - 39.9% | 36.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.4% - 7.3% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.87 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 9.6% |
| Tax rate | 32.4% | 39.9% |
| Debt/Equity ratio | 0.5 | 0.5 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.4% | 7.3% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7338.T | INV Inc | 0.5 | 0.43 | 0.32 |
| 3113.T | Oak Capital Corp | 0.34 | 0.62 | 0.51 |
| 7175.T | Imamura Securities Co Ltd | 0.11 | 0.98 | 0.92 |
| 8617.T | Kosei Securities Co Ltd | 0.1 | 0.89 | 0.84 |
| 8700.T | Maruhachi Securities Co Ltd | 0.05 | 0.47 | 0.46 |
| 8704.T | Traders Holdings Co Ltd | 0.04 | 1.45 | 1.41 |
| 8705.T | Okato Nissan Securities Holdings Inc | 0.33 | 0.82 | 0.68 |
| 8742.T | Kobayashi Yoko Co Ltd | 0.03 | 0.52 | 0.51 |
| 8747.T | Yutaka Trusty Securities Co Ltd | 0.08 | 0.76 | 0.72 |
| 8789.T | FinTech Global Inc | 0.33 | 1.36 | 1.12 |
| Low | High | |
| Unlevered beta | 0.61 | 0.77 |
| Relevered beta | 0.81 | 1.01 |
| Adjusted relevered beta | 0.87 | 1.01 |
7338.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 7338.T:
cost_of_equity (8.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.87) + 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.