9266.T WACC - Weighted Average Cost of Capital

The WACC of Ikka Dining Project Ltd (9266.T) is 4.5%.

The Cost of Equity of Ikka Dining Project Ltd (9266.T) is 5.40%.

The Cost of Debt of Ikka Dining Project Ltd (9266.T) is 5.50%.

	Range	Selected
Cost of equity	4.30% - 6.50%	5.40%
Tax rate	35.60% - 36.50%	36.05%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.5% - 5.5%	4.5%

WACC

9266.T WACC calculation

Category	Low	High

Long-term bond rate	0.8%	1.2%
Equity market risk premium	5.4%	6.4%
Adjusted beta	0.65	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.30%	6.50%

Tax rate	35.60%	36.50%
Debt/Equity ratio	0.89	0.89
Cost of debt	4.00%	7.00%

After-tax WACC	3.5%	5.5%


Selected WACC	4.5%

9266.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 9266.T:

cost_of_equity (5.40%) = risk_free_rate (1.00%) + equity_risk_premium (5.90%) * adjusted_beta (0.65) + 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.