7687.T WACC - Weighted Average Cost of Capital
The WACC of Micreed Co Ltd (7687.T) is 6.4%.
| Range | Selected | |
| Cost of equity | 7.2% - 11.5% | 9.35% |
| Tax rate | 30.4% - 31.2% | 30.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.3% - 7.5% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.94 | 1.28 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 11.5% |
| Tax rate | 30.4% | 31.2% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.3% | 7.5% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7687.T | Micreed Co Ltd | 0.84 | 0.75 | 0.47 |
| 2673.T | Yumemitsuketai Co Ltd | 0.43 | 0.41 | 0.32 |
| 3135.T | MarketEnterprise Co Ltd | 0.28 | 1.18 | 0.98 |
| 3192.T | Shirohato Co Ltd | 1.76 | 0.43 | 0.19 |
| 3416.T | Pixta Inc | 0.01 | 0.52 | 0.51 |
| 3558.T | Locondo Inc | 0.05 | 0.97 | 0.94 |
| 3726.T | 4Cs Holdings Co Ltd | 0.09 | 0.83 | 0.78 |
| 4017.T | Creema Ltd | 0.18 | 1.04 | 0.92 |
| 7685.T | BuySell Technologies Co Ltd | 0.28 | 1.45 | 1.21 |
| 7695.T | Koukandekirukun Inc | 0.1 | 0.42 | 0.39 |
| 9272.T | Boutiques Inc | 0.07 | 0.6 | 0.57 |
| Low | High | |
| Unlevered beta | 0.51 | 0.78 |
| Relevered beta | 0.91 | 1.42 |
| Adjusted relevered beta | 0.94 | 1.28 |
7687.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 7687.T:
cost_of_equity (9.35%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.94) + 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.