The WACC of Toin Corp (7923.T) is 5.4%.
Range | Selected | |
Cost of equity | 6.2% - 10.0% | 8.1% |
Tax rate | 24.5% - 31.2% | 27.85% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 4.5% - 6.3% | 5.4% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.79 | 1.07 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 6.2% | 10.0% |
Tax rate | 24.5% | 31.2% |
Debt/Equity ratio | 1.17 | 1.17 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 4.5% | 6.3% |
Selected WACC | 5.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
7923.T | Toin Corp | 1.17 | 0.51 | 0.28 |
1629.HK | Champion Alliance International Holdings Ltd | 0.4 | 0.92 | 0.71 |
3892.T | Okayama Paper Industries Co Ltd | 0.01 | 0.41 | 0.41 |
3944.T | Furubayashi Shiko Co Ltd | 1.63 | 0.29 | 0.13 |
3950.T | Pack Corp | 0.01 | 0.68 | 0.68 |
3953.T | Ohmura Shigyo Co Ltd | 0.08 | 0.33 | 0.31 |
3954.T | Showa Paxxs Corp | 0.14 | 0.61 | 0.55 |
7504.T | Kohsoku Corp | 0.01 | 0.65 | 0.65 |
9385.T | Shoei Corp | 0.92 | 0.3 | 0.18 |
ORNA.KL | Ornapaper Bhd | 1.69 | 1.51 | 0.67 |
Low | High | |
Unlevered beta | 0.37 | 0.59 |
Relevered beta | 0.69 | 1.1 |
Adjusted relevered beta | 0.79 | 1.07 |
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 7923.T:
cost_of_equity (8.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.79) + 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.