7829.T WACC - Weighted Average Cost of Capital

The WACC of Samantha Thavasa Japan Ltd (7829.T) is 6.2%.

The Cost of Equity of Samantha Thavasa Japan Ltd (7829.T) is 10.25%.

The Cost of Debt of Samantha Thavasa Japan Ltd (7829.T) is 5.50%.

	Range	Selected
Cost of equity	8.30% - 12.20%	10.25%
Tax rate	2.50% - 5.70%	4.10%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.7% - 7.7%	6.2%

WACC

7829.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.13	1.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.30%	12.20%

Tax rate	2.50%	5.70%
Debt/Equity ratio	4.35	4.35
Cost of debt	4.00%	7.00%

After-tax WACC	4.7%	7.7%


Selected WACC	6.2%

7829.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 7829.T:

cost_of_equity (10.25%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.13) + 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.