7923.T
Toin Corp
Price:  
673 
JPY
Volume:  
500
Japan | Containers & Packaging

7923.T WACC - Weighted Average Cost of Capital

The WACC of Toin Corp (7923.T) is 5.4%.

The Cost of Equity of Toin Corp (7923.T) is 8.1%.
The Cost of Debt of Toin Corp (7923.T) is 4.25%.

RangeSelected
Cost of equity6.2% - 10.0%8.1%
Tax rate24.5% - 31.2%27.85%
Cost of debt4.0% - 4.5%4.25%
WACC4.5% - 6.3%5.4%
WACC

7923.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.791.07
Additional risk adjustments0.0%0.5%
Cost of equity6.2%10.0%
Tax rate24.5%31.2%
Debt/Equity ratio
1.171.17
Cost of debt4.0%4.5%
After-tax WACC4.5%6.3%
Selected WACC5.4%

7923.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 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.