9143.T WACC - Weighted Average Cost of Capital
The WACC of SG Holdings Co Ltd (9143.T) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.3% | 6.25% |
| Tax rate | 29.4% - 30.6% | 30% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.0% - 7.0% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.61 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.3% |
| Tax rate | 29.4% | 30.6% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.0% | 7.0% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9143.T | SG Holdings Co Ltd | 0.09 | 0.13 | 0.12 |
| 2384.T | SBS Holdings Inc | 0.9 | 0.6 | 0.37 |
| 9025.T | Konoike Transport Co Ltd | 0.44 | 0.93 | 0.71 |
| 9064.T | Yamato Holdings Co Ltd | 0.23 | 0.57 | 0.49 |
| 9302.T | Mitsui Soko Holdings Co Ltd | 0.32 | 0.12 | 0.1 |
| 9304.T | Shibusawa Warehouse Co Ltd | 0.54 | 0.67 | 0.49 |
| 9319.T | Chuo Warehouse Co Ltd | 0.24 | 0.49 | 0.42 |
| 9324.T | Yasuda Logistics Corp | 1.35 | 0.56 | 0.29 |
| 9375.T | Kintetsu World Express Inc | 0.56 | 1.18 | 0.85 |
| 9381.T | AIT Corp | 0.01 | 0.79 | 0.78 |
| Low | High | |
| Unlevered beta | 0.4 | 0.49 |
| Relevered beta | 0.42 | 0.54 |
| Adjusted relevered beta | 0.61 | 0.69 |
9143.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 9143.T:
cost_of_equity (6.25%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.61) + 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.