8256.T WACC - Weighted Average Cost of Capital

The WACC of Proroute Marumitsu Co Ltd (8256.T) is 6.6%.

The Cost of Equity of Proroute Marumitsu Co Ltd (8256.T) is 50.75%.

The Cost of Debt of Proroute Marumitsu Co Ltd (8256.T) is 5.50%.

	Range	Selected
Cost of equity	19.20% - 82.30%	50.75%
Tax rate	0.80% - 1.00%	0.90%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.3% - 8.8%	6.6%

WACC

8256.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	2.91	11.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.20%	82.30%

Tax rate	0.80%	1.00%
Debt/Equity ratio	40	40
Cost of debt	4.00%	7.00%

After-tax WACC	4.3%	8.8%


Selected WACC	6.6%

8256.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 8256.T:

cost_of_equity (50.75%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (2.91) + 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.