9318.T
Asia Development Capital Co Ltd
Price:  
1.00 
JPY
Volume:  
177,910,000.00
Japan | Capital Markets
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9318.T WACC - Weighted Average Cost of Capital

The WACC of Asia Development Capital Co Ltd (9318.T) is 6.8%.

The Cost of Equity of Asia Development Capital Co Ltd (9318.T) is 6.70%.
The Cost of Debt of Asia Development Capital Co Ltd (9318.T) is 7.00%.

Range Selected
Cost of equity 5.40% - 8.00% 6.70%
Tax rate 0.30% - 0.30% 0.30%
Cost of debt 7.00% - 7.00% 7.00%
WACC 6.2% - 7.5% 6.8%
WACC

9318.T WACC calculation

Category Low High
Long-term bond rate 1.4% 1.9%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.65 0.79
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 8.00%
Tax rate 0.30% 0.30%
Debt/Equity ratio 1 1
Cost of debt 7.00% 7.00%
After-tax WACC 6.2% 7.5%
Selected WACC 6.8%

9318.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 9318.T:

cost_of_equity (6.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * 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.