8737.T WACC - Weighted Average Cost of Capital
The WACC of Akatsuki Corp (8737.T) is 5.5%.
| Range | Selected | |
| Cost of equity | 7.0% - 17.3% | 12.15% |
| Tax rate | 31.8% - 33.5% | 32.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 3.9% - 7.0% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.91 | 2.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 17.3% |
| Tax rate | 31.8% | 33.5% |
| Debt/Equity ratio | 2.55 | 2.55 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 3.9% | 7.0% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8737.T | Akatsuki Corp | 2.55 | 0.74 | 0.27 |
| 2174.T | GCA Corp | 0.08 | 1.67 | 1.59 |
| 7177.T | GMO Financial Holdings Inc | 2.62 | 0.88 | 0.32 |
| 7338.T | INV Inc | 0.5 | 0.43 | 0.32 |
| 8613.T | Marusan Securities Co Ltd | 0.03 | 0.98 | 0.96 |
| 8616.T | Tokai Tokyo Financial Holdings Inc | 5.43 | 1.07 | 0.23 |
| 8622.T | Mito Securities Co Ltd | 0.1 | 1.65 | 1.54 |
| 8624.T | Ichiyoshi Securities Co Ltd | 0.07 | 1.15 | 1.1 |
| 8628.T | Matsui Securities Co Ltd | 1.94 | 0.51 | 0.22 |
| 8707.T | IwaiCosmo Holdings Inc | 0.36 | 1.2 | 0.96 |
| Low | High | |
| Unlevered beta | 0.32 | 0.96 |
| Relevered beta | 0.87 | 2.63 |
| Adjusted relevered beta | 0.91 | 2.09 |
8737.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 8737.T:
cost_of_equity (12.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.91) + 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.