The WACC of Sacos Corp (9641.T) is 4.9%.
Range | Selected | |
Cost of equity | 4.5% - 6.8% | 5.65% |
Tax rate | 32.2% - 33.1% | 32.65% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 4.0% - 5.8% | 4.9% |
Category | Low | High |
Long-term bond rate | 0.8% | 1.2% |
Equity market risk premium | 5.4% | 6.4% |
Adjusted beta | 0.69 | 0.79 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.5% | 6.8% |
Tax rate | 32.2% | 33.1% |
Debt/Equity ratio | 0.37 | 0.37 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 4.0% | 5.8% |
Selected WACC | 4.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
9641.T | Sacos Corp | 0.37 | 0.73 | 0.59 |
2445.T | Takamiya Co Ltd | 2.2 | 0.7 | 0.28 |
4669.T | Nippan Rental Co Ltd | 3.7 | 1.13 | 0.32 |
4690.T | Nippon Pallet Pool Co Ltd | 1.33 | 0.7 | 0.37 |
7065.T | UPR Corp | 1.72 | 0.93 | 0.43 |
8077.T | TORQ Inc | 2.03 | 0.6 | 0.25 |
9678.T | Kanamoto Co Ltd | 0.48 | 0.67 | 0.51 |
9699.T | Nishio Rent All Co Ltd | 0.87 | 0.76 | 0.48 |
9929.T | Heiwa Paper Co Ltd | 0.57 | 0.18 | 0.13 |
9930.T | Kitazawa Sangyo Co Ltd | 0.3 | 0.54 | 0.45 |
Low | High | |
Unlevered beta | 0.35 | 0.44 |
Relevered beta | 0.54 | 0.69 |
Adjusted relevered beta | 0.69 | 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 9641.T:
cost_of_equity (5.65%) = risk_free_rate (1.00%) + equity_risk_premium (5.90%) * adjusted_beta (0.69) + 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.