8609.T WACC - Weighted Average Cost of Capital

The WACC of Okasan Securities Group Inc (8609.T) is 4.5%.

The Cost of Equity of Okasan Securities Group Inc (8609.T) is 9.50%.

The Cost of Debt of Okasan Securities Group Inc (8609.T) is 4.25%.

	Range	Selected
Cost of equity	7.80% - 11.20%	9.50%
Tax rate	26.80% - 27.90%	27.35%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.0% - 5.0%	4.5%

WACC

8609.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.05	1.24

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.80%	11.20%

Tax rate	26.80%	27.90%
Debt/Equity ratio	3.47	3.47
Cost of debt	4.00%	4.50%

After-tax WACC	4.0%	5.0%


Selected WACC	4.5%

8609.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 8609.T:

cost_of_equity (9.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.05) + 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.