9768.T WACC - Weighted Average Cost of Capital
The WACC of Idea Consultants Inc (9768.T) is 7.7%.
| Range | Selected | |
| Cost of equity | 6.8% - 9.0% | 7.9% |
| Tax rate | 32.2% - 33.9% | 33.05% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.7% - 8.8% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.88 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 9.0% |
| Tax rate | 32.2% | 33.9% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.7% | 8.8% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9768.T | Idea Consultants Inc | 0.03 | 0.54 | 0.53 |
| 2325.T | NJS Co Ltd | 0 | 0.79 | 0.79 |
| 4657.T | Environmental Control Center Co Ltd | 0.72 | 0.79 | 0.54 |
| 5690.T | Rever Holdings Corp | 0.23 | 1 | 0.87 |
| 603388.SS | Yuancheng Environment Co Ltd | 0.6 | 1.22 | 0.87 |
| 603955.SS | Daqian Ecology&Environment Group Co Ltd | 0.1 | 1.06 | 1 |
| 6061.T | Universal Engeisha Co Ltd | 0.02 | 0.96 | 0.94 |
| 6072.T | Jibannet Holdings Co Ltd | 0.02 | 0.93 | 0.91 |
| 6092.T | EnBio Holdings Inc | 1.81 | 0.71 | 0.32 |
| 9755.T | Oyo Corp | 0.15 | 0.89 | 0.81 |
| Low | High | |
| Unlevered beta | 0.8 | 0.87 |
| Relevered beta | 0.82 | 0.88 |
| Adjusted relevered beta | 0.88 | 0.92 |
9768.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 9768.T:
cost_of_equity (7.90%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.88) + 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.