7445.T
Right On Co Ltd
Price:  
243.00 
JPY
Volume:  
185,100.00
Japan | Specialty Retail
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7445.T WACC - Weighted Average Cost of Capital

The WACC of Right On Co Ltd (7445.T) is 5.9%.

The Cost of Equity of Right On Co Ltd (7445.T) is 6.20%.
The Cost of Debt of Right On Co Ltd (7445.T) is 5.50%.

Range Selected
Cost of equity 5.00% - 7.40% 6.20%
Tax rate 6.00% - 8.20% 7.10%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.7% - 7.2% 5.9%
WACC

7445.T WACC calculation

Category Low High
Long-term bond rate 1.4% 1.9%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.42 0.56
Additional risk adjustments 1.0% 1.5%
Cost of equity 5.00% 7.40%
Tax rate 6.00% 8.20%
Debt/Equity ratio 0.28 0.28
Cost of debt 4.00% 7.00%
After-tax WACC 4.7% 7.2%
Selected WACC 5.9%

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 (6.20%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.42) + 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.