8628.T WACC - Weighted Average Cost of Capital
The WACC of Matsui Securities Co Ltd (8628.T) is 6.1%.
| Range | Selected | |
| Cost of equity | 8.9% - 15.3% | 12.1% |
| Tax rate | 30.3% - 30.4% | 30.35% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.9% - 7.3% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.23 | 1.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.9% | 15.3% |
| Tax rate | 30.3% | 30.4% |
| Debt/Equity ratio | 1.94 | 1.94 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.9% | 7.3% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8628.T | Matsui Securities Co Ltd | 1.94 | 0.51 | 0.22 |
| 2174.T | GCA Corp | 0.08 | 1.67 | 1.58 |
| 7177.T | GMO Financial Holdings Inc | 2.62 | 0.88 | 0.31 |
| 8609.T | Okasan Securities Group Inc | 3.42 | 1.26 | 0.37 |
| 8613.T | Marusan Securities Co Ltd | 0.03 | 0.98 | 0.96 |
| 8616.T | Tokai Tokyo Financial Holdings Inc | 5.43 | 1.07 | 0.22 |
| 8624.T | Ichiyoshi Securities Co Ltd | 0.07 | 1.15 | 1.1 |
| 8698.T | Monex Group Inc | 0.48 | 0.93 | 0.7 |
| 8707.T | IwaiCosmo Holdings Inc | 0.36 | 1.2 | 0.96 |
| 8708.T | Aizawa Securities Co Ltd | 0.62 | 1.33 | 0.93 |
| Low | High | |
| Unlevered beta | 0.57 | 0.94 |
| Relevered beta | 1.34 | 2.22 |
| Adjusted relevered beta | 1.23 | 1.82 |
8628.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 8628.T:
cost_of_equity (12.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.23) + 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.