7847.T WACC - Weighted Average Cost of Capital
The WACC of Graphite Design Inc (7847.T) is 7.4%.
| Range | Selected | |
| Cost of equity | 6.8% - 9.6% | 8.2% |
| Tax rate | 32.4% - 33.6% | 33% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.2% - 8.6% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.88 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 9.6% |
| Tax rate | 32.4% | 33.6% |
| Debt/Equity ratio | 0.17 | 0.17 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.2% | 8.6% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7847.T | Graphite Design Inc | 0.17 | 0.48 | 0.43 |
| 2767.T | Fields Corp | 0.08 | 1.24 | 1.18 |
| 4274.T | Hosoya Pyro-Engineering Co Ltd | 0.16 | 0.99 | 0.9 |
| 6858.HK | Honma Golf Ltd | 0.23 | 0.09 | 0.07 |
| 7816.T | Snow Peak Inc | 0.3 | 1.11 | 0.92 |
| 7841.T | Endo Manufacturing Co Ltd | 0.03 | 0.7 | 0.68 |
| 7951.T | Yamaha Corp | 0.04 | 1.06 | 1.03 |
| 7983.T | Miroku Corp | 1.6 | 0.55 | 0.26 |
| 7991.T | Mamiya-OP Co Ltd | 0.51 | 1.04 | 0.77 |
| 8022.T | Mizuno Corp | 0.06 | 1.22 | 1.17 |
| Low | High | |
| Unlevered beta | 0.74 | 0.91 |
| Relevered beta | 0.82 | 1.01 |
| Adjusted relevered beta | 0.88 | 1.01 |
7847.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 7847.T:
cost_of_equity (8.20%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.88) + 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.