9605.T WACC - Weighted Average Cost of Capital
The WACC of Toei Co Ltd (9605.T) is 5.7%.
| Range | Selected | |
| Cost of equity | 4.7% - 7.0% | 5.85% |
| Tax rate | 28.0% - 29.0% | 28.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.6% - 6.9% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.54 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 7.0% |
| Tax rate | 28.0% | 29.0% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.6% | 6.9% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9605.T | Toei Co Ltd | 0.05 | 0.33 | 0.32 |
| 3791.T | IG Port Inc | 1.18 | 0.49 | 0.27 |
| 4295.T | Faith Inc | 0.08 | -0.04 | -0.04 |
| 4308.T | J-Stream Inc | 0.01 | 0.57 | 0.57 |
| 4816.T | Toei Animation Co Ltd | 0.95 | 0.16 | 0.09 |
| 6879.T | Imagica Group Inc | 0.41 | 0.68 | 0.53 |
| 7803.T | Bushiroad Inc | 0.32 | 1.07 | 0.87 |
| 7860.T | Avex Inc | 0 | 0.28 | 0.28 |
| 9601.T | Shochiku Co Ltd | 0.4 | 0.14 | 0.11 |
| 9631.T | Tokyu Recreation Co Ltd | 0.09 | 0.48 | 0.45 |
| Low | High | |
| Unlevered beta | 0.27 | 0.37 |
| Relevered beta | 0.31 | 0.48 |
| Adjusted relevered beta | 0.54 | 0.65 |
9605.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 9605.T:
cost_of_equity (5.85%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.54) + 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.