The WACC of Visionaryholdings Co Ltd (9263.T) is 4.6%.
Range | Selected | |
Cost of equity | 4.3% - 6.9% | 5.6% |
Tax rate | 41.4% - 45.3% | 43.35% |
Cost of debt | 4.0% - 7.0% | 5.5% |
WACC | 3.5% - 5.6% | 4.6% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.47 | 0.63 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.3% | 6.9% |
Tax rate | 41.4% | 45.3% |
Debt/Equity ratio | 0.7 | 0.7 |
Cost of debt | 4.0% | 7.0% |
After-tax WACC | 3.5% | 5.6% |
Selected WACC | 4.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
9263.T | Visionaryholdings Co Ltd | 0.7 | 1.38 | 0.98 |
2769.T | Village Vanguard Co Ltd | 1.2 | 0.12 | 0.07 |
3058.T | Sanyodo Holdings Inc | 0.52 | 0.16 | 0.12 |
3174.T | Happiness and D Co Ltd | 2.3 | 0.14 | 0.06 |
6186.T | Ichikura Co Ltd | 2.72 | 0.43 | 0.17 |
7610.T | Tay Two Co Ltd | 0.38 | 1.05 | 0.86 |
7640.T | Top Culture Co Ltd | 4.11 | 0.96 | 0.29 |
8230.T | Hasegawa Co Ltd | 0.41 | 0.03 | 0.02 |
9966.T | Fujikyu Corp | 0.01 | 0.97 | 0.96 |
9978.T | Bunkyodo Group Holdings Co Ltd | 2.08 | 0.82 | 0.37 |
Low | High | |
Unlevered beta | 0.15 | 0.32 |
Relevered beta | 0.21 | 0.45 |
Adjusted relevered beta | 0.47 | 0.63 |
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.