9063.T WACC - Weighted Average Cost of Capital
The WACC of Okayamaken Freight Transportation Co Ltd (9063.T) is 5.0%.
| Range | Selected | |
| Cost of equity | 7.4% - 10.6% | 9% |
| Tax rate | 33.8% - 34.1% | 33.95% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 5.7% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.98 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 10.6% |
| Tax rate | 33.8% | 34.1% |
| Debt/Equity ratio | 1.76 | 1.76 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 5.7% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9063.T | Okayamaken Freight Transportation Co Ltd | 1.76 | 0.48 | 0.22 |
| 9028.T | Zero Co Ltd | 0.26 | 1.08 | 0.92 |
| 9029.T | Higashi Twenty One Co Ltd | 0.41 | 0.8 | 0.63 |
| 9059.T | Kanda Holdings Co Ltd | 0.37 | 0.65 | 0.52 |
| 9067.T | Maruwn Corp | 0.03 | 0.48 | 0.47 |
| 9073.T | Kyogoku Unyu Shoji Co Ltd | 0.46 | 1.51 | 1.16 |
| 9078.T | S Line Co Ltd | 0.08 | 0.05 | 0.05 |
| 9083.T | Shinki Bus Co Ltd | 0.16 | 0.07 | 0.07 |
| 9312.T | Keihin Co Ltd | 0.48 | 0.53 | 0.4 |
| 9369.T | KRS Corp | 0.55 | 1.22 | 0.9 |
| Low | High | |
| Unlevered beta | 0.45 | 0.57 |
| Relevered beta | 0.97 | 1.22 |
| Adjusted relevered beta | 0.98 | 1.15 |
9063.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 9063.T:
cost_of_equity (9.00%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.98) + 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.