7455.T WACC - Weighted Average Cost of Capital
The WACC of Paris Miki Holdings Inc (7455.T) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.6% | 6.5% |
| Tax rate | 42.6% - 48.2% | 45.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.1% - 7.0% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.66 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.6% |
| Tax rate | 42.6% | 48.2% |
| Debt/Equity ratio | 0.12 | 0.12 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.1% | 7.0% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7455.T | Paris Miki Holdings Inc | 0.12 | 0.57 | 0.53 |
| 2769.T | Village Vanguard Co Ltd | 1.19 | 0.12 | 0.07 |
| 2780.T | Komehyo Holdings Co Ltd | 1.46 | 1.11 | 0.61 |
| 7514.T | Himaraya Co Ltd | 0.48 | 0.09 | 0.07 |
| 7610.T | Tay Two Co Ltd | 0.34 | 1.05 | 0.89 |
| 7640.T | Top Culture Co Ltd | 3.97 | 1.04 | 0.32 |
| 9263.T | Visionaryholdings Co Ltd | 0.7 | 1.38 | 0.99 |
| 9270.T | Valuence Holdings Inc | 1.33 | 0.71 | 0.41 |
| 9966.T | Fujikyu Corp | 0.01 | 0.97 | 0.96 |
| 9978.T | Bunkyodo Group Holdings Co Ltd | 1.75 | 0.96 | 0.49 |
| Low | High | |
| Unlevered beta | 0.46 | 0.56 |
| Relevered beta | 0.49 | 0.6 |
| Adjusted relevered beta | 0.66 | 0.73 |
7455.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 7455.T:
cost_of_equity (6.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.66) + 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.