7472.T WACC - Weighted Average Cost of Capital
The WACC of Toba Inc (7472.T) is 6.0%.
| Range | Selected | |
| Cost of equity | 7.2% - 10.0% | 8.6% |
| Tax rate | 31.7% - 32.4% | 32.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 6.7% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.96 | 1.07 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 10.0% |
| Tax rate | 31.7% | 32.4% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 6.7% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7472.T | Toba Inc | 1.03 | 0.51 | 0.3 |
| 1514.T | Sumiseki Holdings Inc | 0 | 1.47 | 1.47 |
| 1736.T | Otec Corp | 0.09 | 0.93 | 0.87 |
| 3023.T | Rasa Corp | 0.24 | 0.89 | 0.76 |
| 3173.T | Cominix Co Ltd | 1.8 | 0.43 | 0.19 |
| 7417.T | Nanyo Corp | 0.1 | 0.64 | 0.6 |
| 7434.T | Otake Corp | 0.01 | 0.51 | 0.5 |
| 8138.T | Sankyo Kasei Corp | 0.24 | 0.24 | 0.21 |
| 8147.T | Tomita Co Ltd | 0.02 | 0.47 | 0.46 |
| 9909.T | Aiko Corp | 0.88 | 1.16 | 0.73 |
| 9967.T | Sakai Trading Co Ltd | 0.47 | 0.78 | 0.59 |
| Low | High | |
| Unlevered beta | 0.5 | 0.6 |
| Relevered beta | 0.94 | 1.1 |
| Adjusted relevered beta | 0.96 | 1.07 |
7472.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 7472.T:
cost_of_equity (8.60%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.96) + 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.