9787.T WACC - Weighted Average Cost of Capital
The WACC of Aeon Delight Co Ltd (9787.T) is 6.4%.
| Range | Selected | |
| Cost of equity | 4.9% - 7.8% | 6.35% |
| Tax rate | 29.8% - 32.2% | 31% |
| Cost of debt | 4.0% - 12.9% | 8.45% |
| WACC | 4.9% - 7.8% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.58 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 7.8% |
| Tax rate | 29.8% | 32.2% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 12.9% |
| After-tax WACC | 4.9% | 7.8% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9787.T | Aeon Delight Co Ltd | 0 | 0.09 | 0.09 |
| 1712.T | Daiseki Eco Solution Co Ltd | 0.35 | 0.53 | 0.43 |
| 2151.T | Takeei Corp | 0.85 | 1.21 | 0.76 |
| 4664.T | Japan Reliance Service Corp | 0.22 | 0.04 | 0.03 |
| 5690.T | Rever Holdings Corp | 0.23 | 1 | 0.86 |
| 5698.T | Envipro Holdings Inc | 0.57 | 1.02 | 0.73 |
| 6564.T | Midac Co Ltd | 0.16 | 1.03 | 0.93 |
| 6566.T | Kaname Kogyo Co Ltd | 0.05 | 0.29 | 0.28 |
| 9791.T | Biken Techno Corp | 1.46 | 0.48 | 0.24 |
| 9793.T | Daiseki Co Ltd | 0.04 | 0.6 | 0.59 |
| Low | High | |
| Unlevered beta | 0.37 | 0.64 |
| Relevered beta | 0.37 | 0.64 |
| Adjusted relevered beta | 0.58 | 0.76 |
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 (6.35%) = 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.