7804.T WACC - Weighted Average Cost of Capital
The WACC of B&P Co Ltd (7804.T) is 5.9%.
| Range | Selected | |
| Cost of equity | 7.4% - 10.3% | 8.85% |
| Tax rate | 31.0% - 32.7% | 31.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.1% - 6.7% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.99 | 1.12 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 10.3% |
| Tax rate | 31.0% | 32.7% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.1% | 6.7% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7804.T | B&P Co Ltd | 0 | 0.61 | 0.61 |
| 3948.T | Hikari Business Form Co Ltd | 0.03 | 0.54 | 0.53 |
| 5704.T | JMC Corp | 0.51 | 0.67 | 0.5 |
| 7862.T | Toppan Forms Co Ltd | 0.01 | 0.7 | 0.69 |
| 7863.T | Hiraga Co Ltd | 0.2 | 0.35 | 0.3 |
| 7868.T | Kosaido Co Ltd | 0.32 | 0.86 | 0.71 |
| 7901.T | Matsumoto Inc | 0.54 | 1.02 | 0.75 |
| 7911.T | Toppan Printing Co Ltd | 0.41 | 1.01 | 0.79 |
| 7914.T | Kyodo Printing Co Ltd | 0.3 | 1.03 | 0.86 |
| 7922.T | Sanko Sangyo Co Ltd | 0.32 | 0.76 | 0.62 |
| 7946.T | Koyosha Inc | 0.39 | 0.43 | 0.34 |
| Low | High | |
| Unlevered beta | 0.61 | 0.69 |
| Relevered beta | 0.99 | 1.18 |
| Adjusted relevered beta | 0.99 | 1.12 |
7804.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 7804.T:
cost_of_equity (8.85%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.99) + 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.