9029.T WACC - Weighted Average Cost of Capital
The WACC of Higashi Twenty One Co Ltd (9029.T) is 5.6%.
| Range | Selected | |
| Cost of equity | 5.3% - 8.6% | 6.95% |
| Tax rate | 35.8% - 36.5% | 36.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 6.7% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.64 | 0.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 8.6% |
| Tax rate | 35.8% | 36.5% |
| Debt/Equity ratio | 0.49 | 0.49 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 6.7% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9029.T | Higashi Twenty One Co Ltd | 0.49 | 0.83 | 0.63 |
| 9017.T | Niigata Kotsu Co Ltd | 3.36 | 0.14 | 0.05 |
| 9028.T | Zero Co Ltd | 0.25 | 1.06 | 0.91 |
| 9033.T | Hiroshima Electric Railway Co Ltd | 1.46 | 0.17 | 0.09 |
| 9034.T | Nanso Transport Co Ltd | 0.61 | 0.62 | 0.44 |
| 9057.T | Enshu Truck Co Ltd | 0.45 | 0.28 | 0.22 |
| 9067.T | Maruwn Corp | 0.03 | 0.61 | 0.6 |
| 9073.T | Kyogoku Unyu Shoji Co Ltd | 0.47 | 1.65 | 1.27 |
| 9082.T | Daiwa Motor Transportation Co Ltd | 4.17 | 0.02 | 0 |
| 9369.T | KRS Corp | 0.8 | 1.24 | 0.82 |
| Low | High | |
| Unlevered beta | 0.35 | 0.61 |
| Relevered beta | 0.46 | 0.81 |
| Adjusted relevered beta | 0.64 | 0.87 |
9029.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 9029.T:
cost_of_equity (6.95%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.64) + 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.