9381.T WACC - Weighted Average Cost of Capital
The WACC of AIT Corp (9381.T) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.3% - 8.6% | 6.95% |
| Tax rate | 31.7% - 32.2% | 31.95% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.3% - 8.6% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.64 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 8.6% |
| Tax rate | 31.7% | 32.2% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.3% | 8.6% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9381.T | AIT Corp | 0.01 | 0.79 | 0.78 |
| 6123.HK | YTO Express (International) Holdings Ltd | 0.08 | 0.91 | 0.86 |
| 9145.T | Being Holdings Co Ltd | 0.37 | 0.51 | 0.4 |
| 9304.T | Shibusawa Warehouse Co Ltd | 0.54 | 0.67 | 0.49 |
| 9319.T | Chuo Warehouse Co Ltd | 0.24 | 0.49 | 0.42 |
| 9324.T | Yasuda Logistics Corp | 1.35 | 0.56 | 0.29 |
| 9326.T | Kantsu Co Ltd | 1.61 | 0.37 | 0.17 |
| GATI.NS | Gati Ltd | 0.19 | 1.4 | 1.24 |
| MAHLOG.NS | Mahindra Logistics Ltd | 0.34 | 1.7 | 1.38 |
| TCI.NS | Transport Corporation of India Ltd | 0.02 | 1.32 | 1.3 |
| Low | High | |
| Unlevered beta | 0.46 | 0.81 |
| Relevered beta | 0.46 | 0.82 |
| Adjusted relevered beta | 0.64 | 0.88 |
9381.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 9381.T:
cost_of_equity (6.95%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.64) + 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.