7676.T WACC - Weighted Average Cost of Capital
The WACC of Goodspeed Co Ltd (7676.T) is 5.1%.
| Range | Selected | |
| Cost of equity | 10.3% - 17.5% | 13.9% |
| Tax rate | 35.0% - 38.0% | 36.5% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 3.8% - 6.4% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.46 | 2.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.3% | 17.5% |
| Tax rate | 35.0% | 38.0% |
| Debt/Equity ratio | 5.44 | 5.44 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 3.8% | 6.4% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7676.T | Goodspeed Co Ltd | 5.44 | 0.12 | 0.03 |
| 3184.T | International Conglomerate of Distribution for Automobile Holdings Co Ltd | 0.2 | 0.37 | 0.33 |
| 3538.T | Willplus Holdings Corp | 1.54 | 0.83 | 0.42 |
| 7509.T | I.A Group Corp | 0.75 | 0.26 | 0.18 |
| 7599.T | IDOM Inc | 0.72 | 0.85 | 0.59 |
| 7605.T | Fuji Corp (Miyagi) | 0.02 | 0.73 | 0.72 |
| 7623.T | Sunautas Co Ltd | 2.33 | 0.32 | 0.13 |
| 8291.T | Nissan Tokyo Sales Holdings Co Ltd | 0.41 | 0.81 | 0.64 |
| 8298.T | Family Inc | 0.89 | 1.12 | 0.72 |
| 9856.T | KU Holdings Co Ltd | 0.27 | 0.81 | 0.69 |
| Low | High | |
| Unlevered beta | 0.38 | 0.61 |
| Relevered beta | 1.69 | 2.69 |
| Adjusted relevered beta | 1.46 | 2.13 |
7676.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 7676.T:
cost_of_equity (13.90%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.46) + 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.