7917.T WACC - Weighted Average Cost of Capital

The WACC of Fujimori Kogyo Co Ltd (7917.T) is 7.2%.

The Cost of Equity of Fujimori Kogyo Co Ltd (7917.T) is 7.40%.

The Cost of Debt of Fujimori Kogyo Co Ltd (7917.T) is 4.25%.

	Range	Selected
Cost of equity	6.30% - 8.50%	7.40%
Tax rate	25.60% - 27.30%	26.45%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.2% - 8.3%	7.2%

WACC

7917.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.8	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.30%	8.50%

Tax rate	25.60%	27.30%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.00%	4.50%

After-tax WACC	6.2%	8.3%


Selected WACC	7.2%

7917.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 7917.T:

cost_of_equity (7.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.8) + 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.