The WACC of Bell-Park Co Ltd (9441.T) is 6.7%.
Range | Selected | |
Cost of equity | 5.4% - 8.0% | 6.7% |
Tax rate | 30.2% - 31.3% | 30.75% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 5.4% - 8.0% | 6.7% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.66 | 0.79 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.4% | 8.0% |
Tax rate | 30.2% | 31.3% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 5.4% | 8.0% |
Selected WACC | 6.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
9441.T | Bell-Park Co Ltd | 0 | 0.23 | 0.23 |
3322.T | Alpha Group Inc | 0.31 | -0.23 | -0.19 |
7618.T | PC Depot Corp | 0.2 | 1.33 | 1.17 |
8185.T | Chiyoda Co Ltd | 0.02 | 0.67 | 0.66 |
8202.T | Laox Co Ltd | 0.22 | 0.86 | 0.75 |
9428.T | Crops Corp | 0.26 | 0.3 | 0.25 |
9435.T | Hikari Tsushin Inc | 0.5 | 0.89 | 0.66 |
9444.T | Toshin Holdings Co Ltd | 4.18 | 0.25 | 0.06 |
9856.T | KU Holdings Co Ltd | 0.26 | 0.84 | 0.71 |
FRT.VN | FPT Digital Retail JSC | 0.39 | 1.1 | 0.86 |
Low | High | |
Unlevered beta | 0.49 | 0.68 |
Relevered beta | 0.49 | 0.69 |
Adjusted relevered beta | 0.66 | 0.79 |
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 9441.T:
cost_of_equity (6.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.66) + 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.