9264.T WACC - Weighted Average Cost of Capital
The WACC of Puequ Co Ltd (9264.T) is 5.2%.
| Range | Selected | |
| Cost of equity | 6.0% - 9.0% | 7.5% |
| Tax rate | 38.3% - 41.3% | 39.8% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.3% - 6.0% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.74 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 9.0% |
| Tax rate | 38.3% | 41.3% |
| Debt/Equity ratio | 0.87 | 0.87 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.3% | 6.0% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9264.T | Puequ Co Ltd | 0.87 | 0.99 | 0.65 |
| 3444.T | Kikuchi Seisakusho Co Ltd | 0.54 | 0.46 | 0.35 |
| 5903.T | Shinpo Co Ltd | 0.02 | 0.39 | 0.39 |
| 5939.T | Otani Kogyo Co Ltd | 0.11 | 0.61 | 0.57 |
| 6131.T | Hamai Co Ltd | 0.32 | 0.03 | 0.02 |
| 6159.T | Micron Machinery Co Ltd | 0.03 | 0.62 | 0.61 |
| 6307.T | Sansei Co Ltd | 0.1 | 0.45 | 0.42 |
| 6400.T | Fuji Seiki Co Ltd | 1.55 | 0.55 | 0.28 |
| 6488.T | Yoshitake Inc | 0.11 | 0.68 | 0.64 |
| 6492.T | Okano Valve Mfg. Co Ltd | 0.1 | 1.08 | 1.02 |
| Low | High | |
| Unlevered beta | 0.41 | 0.58 |
| Relevered beta | 0.61 | 0.88 |
| Adjusted relevered beta | 0.74 | 0.92 |
9264.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 9264.T:
cost_of_equity (7.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.74) + 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.