8040.T WACC - Weighted Average Cost of Capital
The WACC of Tokyo Soir Co Ltd (8040.T) is 5.3%.
| Range | Selected | |
| Cost of equity | 4.8% - 6.7% | 5.75% |
| Tax rate | 12.0% - 15.1% | 13.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.6% - 6.1% | 5.3% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.56 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 6.7% |
| Tax rate | 12.0% | 15.1% |
| Debt/Equity ratio | 0.24 | 0.24 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.6% | 6.1% |
| Selected WACC | 5.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8040.T | Tokyo Soir Co Ltd | 0.24 | 0.36 | 0.29 |
| 013990.KQ | Agabang & Company | 0.02 | 0.04 | 0.04 |
| 1346.HK | Lever Style Corp | 0 | 0.35 | 0.35 |
| 2736.T | Festaria Holdings Co Ltd | 1.56 | 0.22 | 0.09 |
| 3161.T | Azearth Corp | 0.05 | 0.45 | 0.43 |
| 3860.HK | Speed Apparel Holding Ltd | 0.02 | 0.55 | 0.54 |
| 7771.T | Nihon Seimitsu Co Ltd | 1.67 | 0.68 | 0.28 |
| 7810.T | Crossfor Co Ltd | 0.99 | 0.41 | 0.22 |
| 8143.T | Lapine Co Ltd | 2.09 | 0.9 | 0.32 |
| MONTECARLO.NS | Monte Carlo Fashions Ltd | 0.31 | 0.98 | 0.78 |
| Low | High | |
| Unlevered beta | 0.29 | 0.33 |
| Relevered beta | 0.34 | 0.4 |
| Adjusted relevered beta | 0.56 | 0.6 |
8040.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 8040.T:
cost_of_equity (5.75%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.56) + 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.