9422.T WACC - Weighted Average Cost of Capital
The WACC of Conexio Corp (9422.T) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.6% | 7.3% |
| Tax rate | 32.7% - 32.8% | 32.75% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.0% - 8.6% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.75 | 0.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.6% |
| Tax rate | 32.7% | 32.8% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.0% | 8.6% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9422.T | Conexio Corp | 0 | 0.59 | 0.59 |
| 2715.T | Elematec Corp | 0 | 0.91 | 0.91 |
| 2737.T | Tomen Devices Corp | 0.36 | 1.36 | 1.09 |
| 2760.T | Tokyo Electron Device Ltd | 0.48 | 0.85 | 0.64 |
| 7433.T | Hakuto Co Ltd | 0.43 | 0.71 | 0.55 |
| 7537.T | Marubun Corp | 1.79 | 1.1 | 0.5 |
| 8084.T | Ryoden Corp | 0.04 | 1.05 | 1.02 |
| 8137.T | Sun-Wa Technos Corp | 0.24 | 0.86 | 0.74 |
| 8140.T | Ryosan Co Ltd | 0.3 | 0.64 | 0.53 |
| 8159.T | Tachibana Eletech Co Ltd | 0.16 | 1.17 | 1.06 |
| Low | High | |
| Unlevered beta | 0.62 | 0.81 |
| Relevered beta | 0.63 | 0.81 |
| Adjusted relevered beta | 0.75 | 0.87 |
9422.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 9422.T:
cost_of_equity (7.30%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.75) + 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.