8595.T WACC - Weighted Average Cost of Capital
The WACC of JAFCO Group Co Ltd (8595.T) is 9.5%.
| Range | Selected | |
| Cost of equity | 8.0% - 12.3% | 10.15% |
| Tax rate | 24.0% - 29.2% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.6% - 11.4% | 9.5% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.08 | 1.38 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 12.3% |
| Tax rate | 24.0% | 29.2% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.6% | 11.4% |
| Selected WACC | 9.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8595.T | JAFCO Group Co Ltd | 0.11 | 0.48 | 0.44 |
| 3454.T | First Brothers Co Ltd | 4.05 | 0.43 | 0.11 |
| 600053.SS | Kunwu Jiuding Investment Holdings Co Ltd | 0.03 | 1.5 | 1.48 |
| 600816.SS | Anxin Trust Co Ltd | 0.1 | 1.7 | 1.58 |
| 7162.T | Astmax Co Ltd | 1.49 | 0.62 | 0.3 |
| 7190.T | Mercuria Investment Co Ltd | 0.11 | 1.68 | 1.56 |
| 7342.T | WealthNavi Inc | 0.01 | 1.06 | 1.05 |
| 8739.T | Sparx Group Co Ltd | 0.23 | 1.13 | 0.97 |
| NWL.AX | Netwealth Group Ltd | 0 | 1.91 | 1.91 |
| PTM.AX | Platinum Asset Management Ltd | 0.03 | 1.48 | 1.44 |
| Low | High | |
| Unlevered beta | 1.02 | 1.46 |
| Relevered beta | 1.12 | 1.57 |
| Adjusted relevered beta | 1.08 | 1.38 |
8595.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 8595.T:
cost_of_equity (10.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.08) + 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.