8772.T WACC - Weighted Average Cost of Capital

The WACC of Asax Co Ltd (8772.T) is 4.6%.

The Cost of Equity of Asax Co Ltd (8772.T) is 9.30%.

The Cost of Debt of Asax Co Ltd (8772.T) is 4.25%.

	Range	Selected
Cost of equity	6.80% - 11.80%	9.30%
Tax rate	34.90% - 35.00%	34.95%
Cost of debt	4.00% - 4.50%	4.25%
WACC	3.8% - 5.4%	4.6%

WACC

8772.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.89	1.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.80%	11.80%

Tax rate	34.90%	35.00%
Debt/Equity ratio	2.63	2.63
Cost of debt	4.00%	4.50%

After-tax WACC	3.8%	5.4%


Selected WACC	4.6%

8772.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 8772.T:

cost_of_equity (9.30%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.89) + 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.