7827.T WACC - Weighted Average Cost of Capital
The WACC of Orvis Corp (7827.T) is 4.8%.
| Range | Selected | |
| Cost of equity | 6.0% - 10.8% | 8.4% |
| Tax rate | 28.1% - 32.7% | 30.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 3.9% - 5.6% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.75 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 10.8% |
| Tax rate | 28.1% | 32.7% |
| Debt/Equity ratio | 2.01 | 2.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 3.9% | 5.6% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7827.T | Orvis Corp | 2.01 | 0.42 | 0.18 |
| 3956.T | Kokusai Chart Corp | 0.03 | 1.2 | 1.18 |
| 540954.BO | Indian Wood Products Co Ltd | 0.3 | 1.08 | 0.89 |
| 723.HK | Reliance Global Holdings Ltd | 0.14 | 1.21 | 1.11 |
| 7808.T | C.S. Lumber Co Inc | 1.65 | 0.52 | 0.24 |
| 7815.T | Tokyo Board Industries Co Ltd | 5.25 | 1.28 | 0.28 |
| 7887.T | Nankai Plywood Co Ltd | 0.73 | 0.33 | 0.22 |
| 7897.T | Hokushin Co Ltd | 1.52 | 0.61 | 0.3 |
| 7898.T | Wood One Co Ltd | 4.94 | 0.76 | 0.17 |
| KANGER.KL | Kanger International Bhd | 0.18 | 1.57 | 1.4 |
| Low | High | |
| Unlevered beta | 0.26 | 0.54 |
| Relevered beta | 0.63 | 1.27 |
| Adjusted relevered beta | 0.75 | 1.18 |
7827.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 7827.T:
cost_of_equity (8.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.75) + 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.