7445.T WACC - Weighted Average Cost of Capital
The WACC of Right On Co Ltd (7445.T) is 5.9%.
| Range | Selected | |
| Cost of equity | 4.9% - 7.4% | 6.15% |
| Tax rate | 6.0% - 8.2% | 7.1% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.7% - 7.2% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.41 | 0.56 |
| Additional risk adjustments | 1.0% | 1.5% |
| Cost of equity | 4.9% | 7.4% |
| Tax rate | 6.0% | 8.2% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.7% | 7.2% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7445.T | Right On Co Ltd | 0.26 | 0.42 | 0.34 |
| 2668.T | Tabio Corp | 0.12 | 0.12 | 0.11 |
| 2726.T | PAL Group Holdings Co Ltd | 0.04 | -0.47 | -0.45 |
| 2778.T | Palemo Holdings Co Ltd | 1.06 | 0.98 | 0.5 |
| 7416.T | Haruyama Holdings Inc | 0.97 | 0.17 | 0.09 |
| 7450.T | Sunday Co Ltd | 1.19 | 0.16 | 0.08 |
| 7494.T | Konaka Co Ltd | 1.87 | 0.66 | 0.24 |
| 7564.T | Workman Co Ltd | 0 | -0.2 | -0.2 |
| 7603.T | Mac House Co Ltd | 0.4 | 0.46 | 0.33 |
| 9990.T | Sac's Bar Holdings Inc | 0.06 | 0.81 | 0.77 |
| Low | High | |
| Unlevered beta | 0.1 | 0.28 |
| Relevered beta | 0.12 | 0.34 |
| Adjusted relevered beta | 0.41 | 0.56 |
7445.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 7445.T:
cost_of_equity (6.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.41) + risk_adjustments (1.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.