7494.T WACC - Weighted Average Cost of Capital
The WACC of Konaka Co Ltd (7494.T) is 10.4%.
| Range | Selected | |
| Cost of equity | 7.2% - 10.0% | 8.6% |
| Tax rate | 7.3% - 10.5% | 8.9% |
| Cost of debt | 4.0% - 21.4% | 12.7% |
| WACC | 4.9% - 16.0% | 10.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.94 | 1.07 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 10.0% |
| Tax rate | 7.3% | 10.5% |
| Debt/Equity ratio | 1.87 | 1.87 |
| Cost of debt | 4.0% | 21.4% |
| After-tax WACC | 4.9% | 16.0% |
| Selected WACC | 10.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7494.T | Konaka Co Ltd | 1.87 | 0.66 | 0.24 |
| 2668.T | Tabio Corp | 0.12 | 0.12 | 0.11 |
| 2778.T | Palemo Holdings Co Ltd | 1.06 | 0.98 | 0.49 |
| 3415.T | Tokyo Base Co Ltd | 0.32 | 0.95 | 0.74 |
| 7416.T | Haruyama Holdings Inc | 0.97 | 0.17 | 0.09 |
| 7445.T | Right On Co Ltd | 0.26 | 0.42 | 0.34 |
| 7603.T | Mac House Co Ltd | 0.4 | 0.46 | 0.33 |
| 7615.T | Kyoto Kimono Yuzen Co Ltd | 0.95 | 0.62 | 0.33 |
| 8166.T | Taka-Q Co Ltd | 0.73 | 0.84 | 0.5 |
| 9990.T | Sac's Bar Holdings Inc | 0.06 | 0.81 | 0.77 |
| Low | High | |
| Unlevered beta | 0.33 | 0.4 |
| Relevered beta | 0.91 | 1.1 |
| Adjusted relevered beta | 0.94 | 1.07 |
7494.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 7494.T:
cost_of_equity (8.60%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.94) + 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.