9637.T WACC - Weighted Average Cost of Capital
The WACC of OS Co Ltd (9637.T) is 5.2%.
| Range | Selected | |
| Cost of equity | 5.5% - 8.3% | 6.9% |
| Tax rate | 30.2% - 32.8% | 31.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 6.1% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.67 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 8.3% |
| Tax rate | 30.2% | 32.8% |
| Debt/Equity ratio | 0.72 | 0.72 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 6.1% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9637.T | OS Co Ltd | 0.72 | -0.69 | -0.47 |
| 016880.KS | Woongjin Co Ltd | 1.91 | 1.14 | 0.5 |
| 3001.T | Katakura Industries Co Ltd | 0.12 | 0.77 | 0.71 |
| 3167.T | Tokai Holdings Corp | 0.44 | 0.28 | 0.21 |
| 3232.T | Mie Kotsu Group Holdings Inc | 1.5 | 0.53 | 0.26 |
| 5856.T | Life Intelligent Enterprise Holdings Co Ltd | 0.25 | 0.92 | 0.79 |
| 7744.T | Noritsu Koki Co Ltd | 0.23 | 1.27 | 1.1 |
| 7932.T | Nippi Inc | 0.35 | 0.63 | 0.51 |
| 9271.T | Wagokoro Co Ltd | 0.15 | 0.43 | 0.39 |
| 9635.T | Musashino Kogyo Co Ltd | 0.14 | 0.18 | 0.17 |
| Low | High | |
| Unlevered beta | 0.34 | 0.5 |
| Relevered beta | 0.51 | 0.75 |
| Adjusted relevered beta | 0.67 | 0.83 |
9637.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 9637.T:
cost_of_equity (6.90%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.67) + 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.