7494.T WACC - Weighted Average Cost of Capital

The WACC of Konaka Co Ltd (7494.T) is 10.4%.

The Cost of Equity of Konaka Co Ltd (7494.T) is 8.40%.

The Cost of Debt of Konaka Co Ltd (7494.T) is 12.70%.

	Range	Selected
Cost of equity	6.90% - 9.90%	8.40%
Tax rate	7.30% - 10.50%	8.90%
Cost of debt	4.00% - 21.40%	12.70%
WACC	4.8% - 15.9%	10.4%

WACC

7494.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.9	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.90%	9.90%

Tax rate	7.30%	10.50%
Debt/Equity ratio	1.87	1.87
Cost of debt	4.00%	21.40%

After-tax WACC	4.8%	15.9%


Selected WACC	10.4%

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 (8.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.9) + 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.