7603.T
Mac House Co Ltd
Price:  
336 
JPY
Volume:  
860,700
Japan | Specialty Retail

7603.T WACC - Weighted Average Cost of Capital

The WACC of Mac House Co Ltd (7603.T) is 6.9%.

The Cost of Equity of Mac House Co Ltd (7603.T) is 6.85%.
The Cost of Debt of Mac House Co Ltd (7603.T) is 8.65%.

RangeSelected
Cost of equity5.4% - 8.3%6.85%
Tax rate10.2% - 12.0%11.1%
Cost of debt7.0% - 10.3%8.65%
WACC5.5% - 8.4%6.9%
WACC

7603.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.410.62
Additional risk adjustments1.5%2.0%
Cost of equity5.4%8.3%
Tax rate10.2%12.0%
Debt/Equity ratio
0.110.11
Cost of debt7.0%10.3%
After-tax WACC5.5%8.4%
Selected WACC6.9%

7603.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 7603.T:

cost_of_equity (6.85%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.41) + risk_adjustments (1.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.