8927.T WACC - Weighted Average Cost of Capital
The WACC of Meiho Enterprise Co Ltd (8927.T) is 5.5%.
| Range | Selected | |
| Cost of equity | 6.9% - 10.1% | 8.5% |
| Tax rate | 22.0% - 28.8% | 25.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.8% - 6.2% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.9 | 1.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.9% | 10.1% |
| Tax rate | 22.0% | 28.8% |
| Debt/Equity ratio | 1.29 | 1.29 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.8% | 6.2% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8927.T | Meiho Enterprise Co Ltd | 1.29 | 0.91 | 0.47 |
| 3241.T | Will Co Ltd | 1.61 | 0.41 | 0.19 |
| 3469.T | Dualtap Co Ltd | 1.06 | 0.14 | 0.08 |
| 3489.T | FaithNetwork Co Ltd | 0.73 | 0.94 | 0.62 |
| 3528.T | Prospect Co Ltd | 0.59 | 1.26 | 0.89 |
| 8836.T | Rise Inc | 0.01 | 1.2 | 1.19 |
| 8854.T | Japan Living Service Co Ltd | 0.99 | 0.67 | 0.39 |
| 8890.T | Raysum Co Ltd | 0.32 | 1.44 | 1.17 |
| 8903.T | Sunwood Corp | 3.63 | 0.06 | 0.02 |
| 8934.T | Sun Frontier Fudousan Co Ltd | 0.9 | 0.91 | 0.55 |
| Low | High | |
| Unlevered beta | 0.44 | 0.58 |
| Relevered beta | 0.85 | 1.12 |
| Adjusted relevered beta | 0.9 | 1.08 |
8927.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 8927.T:
cost_of_equity (8.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.9) + 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.