8614.T WACC - Weighted Average Cost of Capital
The WACC of Toyo Securities Co Ltd (8614.T) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.6% - 9.9% | 8.25% |
| Tax rate | 16.3% - 19.3% | 17.8% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.9% - 8.5% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.84 | 1.05 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 9.9% |
| Tax rate | 16.3% | 19.3% |
| Debt/Equity ratio | 0.27 | 0.27 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.9% | 8.5% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8614.T | Toyo Securities Co Ltd | 0.27 | 1.02 | 0.84 |
| 3113.T | Oak Capital Corp | 0.33 | 0.58 | 0.46 |
| 7185.T | Hirose Tusyo Inc | 0.26 | 0.66 | 0.54 |
| 7338.T | INV Inc | 0.5 | 0.43 | 0.3 |
| 8622.T | Mito Securities Co Ltd | 0.1 | 1.65 | 1.52 |
| 8704.T | Traders Holdings Co Ltd | 0.04 | 1.42 | 1.38 |
| 8705.T | Okato Nissan Securities Holdings Inc | 0.63 | 0.77 | 0.51 |
| 8706.T | Kyokuto Securities Co Ltd | 0.21 | 1.1 | 0.94 |
| 8747.T | Yutaka Trusty Securities Co Ltd | 0.09 | 0.73 | 0.68 |
| 8789.T | FinTech Global Inc | 0.35 | 1.4 | 1.09 |
| Low | High | |
| Unlevered beta | 0.63 | 0.88 |
| Relevered beta | 0.76 | 1.07 |
| Adjusted relevered beta | 0.84 | 1.05 |
8614.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 8614.T:
cost_of_equity (8.25%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.84) + 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.