7339.T WACC - Weighted Average Cost of Capital
The WACC of ipet Holdings Inc (7339.T) is 7.4%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.8% | 7.5% |
| Tax rate | 27.7% - 30.6% | 29.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.1% - 8.7% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.79 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.8% |
| Tax rate | 27.7% | 30.6% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.1% | 8.7% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7339.T | ipet Holdings Inc | 0.03 | 0.72 | 0.71 |
| 2832.TW | Taiwan Fire & Marine Insurance Co Ltd | 0 | 0.48 | 0.47 |
| 8020.SR | Malath Cooperative Insurance Company SJSC | 0 | 1.39 | 1.38 |
| 8630.T | Sompo Holdings Inc | 0.16 | 1.04 | 0.94 |
| 8715.T | Anicom Holdings Inc | 0.2 | 0.82 | 0.72 |
| 8725.T | MS&AD Insurance Group Holdings Inc | 0.14 | 1.51 | 1.38 |
| 8766.T | Tokio Marine Holdings Inc | 0.04 | 1.49 | 1.45 |
| DOHI.QA | Doha Insurance Group QPSC | 0.03 | 0.01 | 0.01 |
| MPHBCAP.KL | MPHB Capital Bhd | 0 | 0.11 | 0.11 |
| TUGU.JK | Asuransi Tugu Pratama Indonesia Tbk PT | 0.19 | 0.7 | 0.62 |
| Low | High | |
| Unlevered beta | 0.67 | 0.81 |
| Relevered beta | 0.69 | 0.85 |
| Adjusted relevered beta | 0.79 | 0.9 |
7339.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 7339.T:
cost_of_equity (7.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.79) + 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.