9830.T WACC - Weighted Average Cost of Capital

The WACC of Trusco Nakayama Corp (9830.T) is 7.0%.

The Cost of Equity of Trusco Nakayama Corp (9830.T) is 8.70%.

The Cost of Debt of Trusco Nakayama Corp (9830.T) is 4.25%.

	Range	Selected
Cost of equity	6.50% - 10.90%	8.70%
Tax rate	30.60% - 31.00%	30.80%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.4% - 8.6%	7.0%

WACC

9830.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.84	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.50%	10.90%

Tax rate	30.60%	31.00%
Debt/Equity ratio	0.43	0.43
Cost of debt	4.00%	4.50%

After-tax WACC	5.4%	8.6%


Selected WACC	7.0%

9830.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 9830.T:

cost_of_equity (8.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.84) + 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.