8225.T WACC - Weighted Average Cost of Capital
The WACC of Takachiho Co Ltd (8225.T) is 5.8%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.9% | 7.45% |
| Tax rate | 30.4% - 40.4% | 35.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.9% - 6.7% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.76 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.9% |
| Tax rate | 30.4% | 40.4% |
| Debt/Equity ratio | 0.54 | 0.54 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.9% | 6.7% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8225.T | Takachiho Co Ltd | 0.54 | 0.67 | 0.49 |
| 4935.T | Liberta Co Ltd | 0.44 | 1.21 | 0.95 |
| 7519.T | Goyo Intex Co Ltd | 3.15 | 2.05 | 0.68 |
| 7647.T | Ontsu Co Ltd | 0.3 | 0.17 | 0.14 |
| 8072.T | Japan Publications Trading Co Ltd | 0.6 | 1.39 | 1 |
| 8115.T | Moonbat Co Ltd | 0.53 | 0.15 | 0.11 |
| 8119.T | Sanyei Corp | 0.42 | 0.26 | 0.2 |
| 9268.T | Optimus Group Co Ltd | 3.97 | 1.55 | 0.44 |
| BAC.SI | Camsing Healthcare Ltd | 0.31 | 0.82 | 0.68 |
| O08.SI | Ossia International Ltd | 0.09 | 0.67 | 0.63 |
| Low | High | |
| Unlevered beta | 0.47 | 0.65 |
| Relevered beta | 0.64 | 0.87 |
| Adjusted relevered beta | 0.76 | 0.91 |
8225.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 8225.T:
cost_of_equity (7.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.76) + 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.