The WACC of Gakkyusha Co Ltd (9769.T) is 5.7%.
Range | Selected | |
Cost of equity | 4.9% - 7.0% | 5.95% |
Tax rate | 32.5% - 33.3% | 32.9% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 4.7% - 6.7% | 5.7% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.57 | 0.64 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.9% | 7.0% |
Tax rate | 32.5% | 33.3% |
Debt/Equity ratio | 0.07 | 0.07 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 4.7% | 6.7% |
Selected WACC | 5.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
9769.T | Gakkyusha Co Ltd | 0.07 | 0.45 | 0.43 |
2179.T | Seigakusha Co Ltd | 0.53 | 0.36 | 0.26 |
4319.T | TAC Co Ltd | 1.37 | 1.1 | 0.57 |
4668.T | Meiko Network Japan Co Ltd | 0 | 0.46 | 0.46 |
4678.T | Shuei Yobiko Co Ltd | 0.65 | 0.32 | 0.22 |
4718.T | Waseda Academy Co Ltd | 0.01 | 0.6 | 0.59 |
7030.T | Sprix Ltd | 0.08 | 0.51 | 0.48 |
9696.T | With us Corp | 0.04 | 0.4 | 0.39 |
9760.T | Shingakukai Holdings Co Ltd | 2.08 | 0.64 | 0.27 |
9795.T | Step Co Ltd | 0.01 | 0.27 | 0.27 |
Low | High | |
Unlevered beta | 0.34 | 0.44 |
Relevered beta | 0.36 | 0.46 |
Adjusted relevered beta | 0.57 | 0.64 |
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 9769.T:
cost_of_equity (5.95%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.57) + 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.