9787.T WACC - Weighted Average Cost of Capital

The WACC of Aeon Delight Co Ltd (9787.T) is 6.3%.

The Cost of Equity of Aeon Delight Co Ltd (9787.T) is 6.25%.

The Cost of Debt of Aeon Delight Co Ltd (9787.T) is 8.45%.

	Range	Selected
Cost of equity	4.90% - 7.60%	6.25%
Tax rate	29.80% - 32.20%	31.00%
Cost of debt	4.00% - 12.90%	8.45%
WACC	4.9% - 7.6%	6.3%

WACC

9787.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.58	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.90%	7.60%

Tax rate	29.80%	32.20%
Debt/Equity ratio	0	0
Cost of debt	4.00%	12.90%

After-tax WACC	4.9%	7.6%


Selected WACC	6.3%

9787.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 9787.T:

cost_of_equity (6.25%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.58) + 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.