9600.T WACC - Weighted Average Cost of Capital
The WACC of I-Net Corp (9600.T) is 7.4%.
| Range | Selected | |
| Cost of equity | 7.4% - 10.3% | 8.85% |
| Tax rate | 32.0% - 32.3% | 32.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.3% - 8.5% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.99 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 10.3% |
| Tax rate | 32.0% | 32.3% |
| Debt/Equity ratio | 0.33 | 0.33 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.3% | 8.5% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9600.T | I-Net Corp | 0.33 | 1.15 | 0.94 |
| 2359.T | Core Corp | 0.05 | 0.84 | 0.81 |
| 3657.T | Poletowin Pitcrew Holdings Inc | 0.52 | 1.06 | 0.78 |
| 3857.T | LAC Co Ltd | 0 | 0.72 | 0.72 |
| 4685.T | Ryoyu Systems Co Ltd | 0 | 1.04 | 1.04 |
| 4687.T | TDC Soft Inc | 0.01 | 1.22 | 1.22 |
| 4709.T | ID Holdings Corp | 0.05 | 0.97 | 0.94 |
| 4761.T | Sakura KCS Corp | 0.06 | 1.12 | 1.08 |
| 9640.T | Saison Information Systems Co Ltd | 0 | 0.28 | 0.28 |
| 9658.T | Business Brain Showa-Ota Inc | 0.12 | 0.64 | 0.59 |
| Low | High | |
| Unlevered beta | 0.8 | 0.94 |
| Relevered beta | 0.99 | 1.15 |
| Adjusted relevered beta | 0.99 | 1.1 |
9600.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 9600.T:
cost_of_equity (8.85%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.99) + 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.