9769.T
Gakkyusha Co Ltd
Price:  
2,207 
JPY
Volume:  
9,400
Japan | Diversified Consumer Services

9769.T WACC - Weighted Average Cost of Capital

The WACC of Gakkyusha Co Ltd (9769.T) is 5.7%.

The Cost of Equity of Gakkyusha Co Ltd (9769.T) is 5.95%.
The Cost of Debt of Gakkyusha Co Ltd (9769.T) is 4.25%.

RangeSelected
Cost of equity4.9% - 7.0%5.95%
Tax rate32.5% - 33.3%32.9%
Cost of debt4.0% - 4.5%4.25%
WACC4.7% - 6.7%5.7%
WACC

9769.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.570.64
Additional risk adjustments0.0%0.5%
Cost of equity4.9%7.0%
Tax rate32.5%33.3%
Debt/Equity ratio
0.070.07
Cost of debt4.0%4.5%
After-tax WACC4.7%6.7%
Selected WACC5.7%

9769.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 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.