7515.T
Maruyoshi Center Inc
Price:  
4,095 
JPY
Volume:  
300
Japan | Food & Staples Retailing

7515.T WACC - Weighted Average Cost of Capital

The WACC of Maruyoshi Center Inc (7515.T) is 3.6%.

The Cost of Equity of Maruyoshi Center Inc (7515.T) is 5.45%.
The Cost of Debt of Maruyoshi Center Inc (7515.T) is 4.25%.

RangeSelected
Cost of equity4.3% - 6.6%5.45%
Tax rate34.3% - 38.3%36.3%
Cost of debt4.0% - 4.5%4.25%
WACC3.2% - 4.0%3.6%
WACC

7515.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.480.59
Additional risk adjustments0.0%0.5%
Cost of equity4.3%6.6%
Tax rate34.3%38.3%
Debt/Equity ratio
2.022.02
Cost of debt4.0%4.5%
After-tax WACC3.2%4.0%
Selected WACC3.6%

7515.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 7515.T:

cost_of_equity (5.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.48) + 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.