8219.T WACC - Weighted Average Cost of Capital
The WACC of Aoyama Trading Co Ltd (8219.T) is 5.2%.
| Range | Selected | |
| Cost of equity | 5.3% - 8.1% | 6.7% |
| Tax rate | 25.7% - 26.9% | 26.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.3% - 6.1% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.64 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 8.1% |
| Tax rate | 25.7% | 26.9% |
| Debt/Equity ratio | 0.72 | 0.72 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.3% | 6.1% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8219.T | Aoyama Trading Co Ltd | 0.72 | 0.5 | 0.33 |
| 2685.T | Adastria Co Ltd | 0.06 | 0.23 | 0.22 |
| 2726.T | PAL Group Holdings Co Ltd | 0.04 | -0.53 | -0.51 |
| 3612.T | World Co Ltd | 1.53 | 0.57 | 0.27 |
| 7445.T | Right On Co Ltd | 0.23 | 0.45 | 0.38 |
| 7545.T | Nishimatsuya Chain Co Ltd | 0.01 | 0.11 | 0.11 |
| 7606.T | United Arrows Ltd | 0.02 | 0.59 | 0.59 |
| 8185.T | Chiyoda Co Ltd | 0.02 | 0.68 | 0.67 |
| 8214.T | Aoki Holdings Inc | 0.28 | 0.8 | 0.66 |
| 9990.T | Sac's Bar Holdings Inc | 0.06 | 0.77 | 0.74 |
| Low | High | |
| Unlevered beta | 0.3 | 0.46 |
| Relevered beta | 0.46 | 0.72 |
| Adjusted relevered beta | 0.64 | 0.81 |
8219.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 8219.T:
cost_of_equity (6.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.64) + 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.