9263.T
Visionaryholdings Co Ltd
Price:  
199 
JPY
Volume:  
267,500
Japan | Specialty Retail

9263.T WACC - Weighted Average Cost of Capital

The WACC of Visionaryholdings Co Ltd (9263.T) is 4.6%.

The Cost of Equity of Visionaryholdings Co Ltd (9263.T) is 5.6%.
The Cost of Debt of Visionaryholdings Co Ltd (9263.T) is 5.5%.

RangeSelected
Cost of equity4.3% - 6.9%5.6%
Tax rate41.4% - 45.3%43.35%
Cost of debt4.0% - 7.0%5.5%
WACC3.5% - 5.6%4.6%
WACC

9263.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.470.63
Additional risk adjustments0.0%0.5%
Cost of equity4.3%6.9%
Tax rate41.4%45.3%
Debt/Equity ratio
0.70.7
Cost of debt4.0%7.0%
After-tax WACC3.5%5.6%
Selected WACC4.6%

9263.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 9263.T:

cost_of_equity (5.60%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.47) + 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.