7408.T WACC - Weighted Average Cost of Capital

The WACC of Jamco Corp (7408.T) is 7.5%.

The Cost of Equity of Jamco Corp (7408.T) is 12.95%.

The Cost of Debt of Jamco Corp (7408.T) is 4.25%.

	Range	Selected
Cost of equity	9.40% - 16.50%	12.95%
Tax rate	33.90% - 37.50%	35.70%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.8% - 9.2%	7.5%

WACC

7408.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.31	1.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.40%	16.50%

Tax rate	33.90%	37.50%
Debt/Equity ratio	1.13	1.13
Cost of debt	4.00%	4.50%

After-tax WACC	5.8%	9.2%


Selected WACC	7.5%

7408.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 7408.T:

cost_of_equity (12.95%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.31) + 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.