9446.T WACC - Weighted Average Cost of Capital
The WACC of Sakai Holdings Co Ltd (9446.T) is 5.0%.
| Range | Selected | |
| Cost of equity | 8.2% - 13.3% | 10.75% |
| Tax rate | 32.4% - 33.6% | 33% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.2% - 5.8% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.11 | 1.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 13.3% |
| Tax rate | 32.4% | 33.6% |
| Debt/Equity ratio | 2.74 | 2.74 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.2% | 5.8% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9446.T | Sakai Holdings Co Ltd | 2.74 | 0.37 | 0.13 |
| 2674.T | Hard Off Corporation Co Ltd | 0.14 | 0.63 | 0.57 |
| 3021.T | Pacific Net Co Ltd | 0.91 | 0.95 | 0.59 |
| 3322.T | Alpha Group Inc | 0.31 | -0.23 | -0.19 |
| 3375.T | ZOA Corp | 0.53 | 0.22 | 0.17 |
| 7618.T | PC Depot Corp | 0.2 | 1.33 | 1.18 |
| 8202.T | Laox Co Ltd | 0.22 | 0.84 | 0.73 |
| 8298.T | Family Inc | 0.89 | 1.12 | 0.7 |
| 9444.T | Toshin Holdings Co Ltd | 4.26 | 0.25 | 0.06 |
| ECII.JK | Electronic City Indonesia Tbk PT | 0.26 | 1.06 | 0.9 |
| Low | High | |
| Unlevered beta | 0.41 | 0.64 |
| Relevered beta | 1.16 | 1.79 |
| Adjusted relevered beta | 1.11 | 1.53 |
9446.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 9446.T:
cost_of_equity (10.75%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.11) + 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.