8566.T WACC - Weighted Average Cost of Capital
The WACC of Ricoh Leasing Co Ltd (8566.T) is 3.4%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.5% | 6.3% |
| Tax rate | 31.0% - 31.0% | 31% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 3.1% - 3.7% | 3.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.6 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 7.5% |
| Tax rate | 31.0% | 31.0% |
| Debt/Equity ratio | 6.24 | 6.24 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 3.1% | 3.7% |
| Selected WACC | 3.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8566.T | Ricoh Leasing Co Ltd | 6.24 | 0.59 | 0.11 |
| 8223.HK | Ziyuanyuan Holdings Group Ltd | 0.34 | -0.07 | -0.06 |
| 8421.T | Shinkin Central Bank | 5.27 | 0.23 | 0.05 |
| 8424.T | Fuyo General Lease Co Ltd | 8.08 | 0.7 | 0.11 |
| 8425.T | Mizuho Leasing Co Ltd | 9.7 | 0.72 | 0.09 |
| 8511.T | Japan Securities Finance Co Ltd | 66.17 | 1 | 0.02 |
| 8593.T | Mitsubishi UFJ Lease & Finance Co Ltd | 5.72 | 0.67 | 0.14 |
| 8596.T | Kyushu Leasing Service Co Ltd | 4.62 | 0.93 | 0.22 |
| 8793.T | NEC Capital Solutions Ltd | 11.18 | 0.91 | 0.1 |
| 9679.T | Horai Co Ltd | 0.46 | 0.05 | 0.04 |
| Low | High | |
| Unlevered beta | 0.08 | 0.11 |
| Relevered beta | 0.4 | 0.57 |
| Adjusted relevered beta | 0.6 | 0.71 |
8566.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 8566.T:
cost_of_equity (6.30%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.6) + 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.