7810.T WACC - Weighted Average Cost of Capital
The WACC of Crossfor Co Ltd (7810.T) is 8.6%.
| Range | Selected | |
| Cost of equity | 5.8% - 9.3% | 7.55% |
| Tax rate | 8.0% - 15.5% | 11.75% |
| Cost of debt | 4.0% - 18.4% | 11.2% |
| WACC | 4.7% - 12.6% | 8.6% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.71 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 9.3% |
| Tax rate | 8.0% | 15.5% |
| Debt/Equity ratio | 1.1 | 1.1 |
| Cost of debt | 4.0% | 18.4% |
| After-tax WACC | 4.7% | 12.6% |
| Selected WACC | 8.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7810.T | Crossfor Co Ltd | 1.1 | 0.48 | 0.24 |
| 1682.HK | Hang Pin Living Technology Co Ltd | 0.01 | 1.42 | 1.4 |
| 3045.T | Kawasaki & Co Ltd | 0.43 | 0.3 | 0.22 |
| 3161.T | Azearth Corp | 0.05 | 0.46 | 0.44 |
| 3202.T | Daitobo Co Ltd | 2.95 | 0.29 | 0.08 |
| 3550.T | Studio Atao Co Ltd | 0.06 | 0.56 | 0.53 |
| 7878.T | Kohsai Co Ltd | 0.52 | 1.01 | 0.68 |
| 8040.T | Tokyo Soir Co Ltd | 0.23 | 0.38 | 0.32 |
| 8107.T | Kimuratan Corp | 0.6 | 1.4 | 0.91 |
| 918.HK | State Energy Group International Assets Holdings Ltd | 0.01 | 0.05 | 0.05 |
| Low | High | |
| Unlevered beta | 0.29 | 0.48 |
| Relevered beta | 0.57 | 0.96 |
| Adjusted relevered beta | 0.71 | 0.97 |
7810.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 7810.T:
cost_of_equity (7.55%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.71) + 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.