7494.T
Konaka Co Ltd
Price:  
235.00 
JPY
Volume:  
29,000.00
Japan | Specialty Retail
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7494.T WACC - Weighted Average Cost of Capital

The WACC of Konaka Co Ltd (7494.T) is 7.2%.

The Cost of Equity of Konaka Co Ltd (7494.T) is 11.35%.
The Cost of Debt of Konaka Co Ltd (7494.T) is 5.50%.

Range Selected
Cost of equity 8.30% - 14.40% 11.35%
Tax rate 7.30% - 10.50% 8.90%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.3% - 9.1% 7.2%
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 1.13 1.69
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.30% 14.40%
Tax rate 7.30% 10.50%
Debt/Equity ratio 1.88 1.88
Cost of debt 4.00% 7.00%
After-tax WACC 5.3% 9.1%
Selected WACC 7.2%

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 (11.35%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.13) + 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.