9854.T WACC - Weighted Average Cost of Capital
The WACC of Aigan Co Ltd (9854.T) is 4.5%.
| Range | Selected | |
| Cost of equity | 3.7% - 5.3% | 4.5% |
| Tax rate | 27.7% - 30.6% | 29.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 3.7% - 5.3% | 4.5% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.38 | 0.4 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 3.7% | 5.3% |
| Tax rate | 27.7% | 30.6% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 3.7% | 5.3% |
| Selected WACC | 4.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9854.T | Aigan Co Ltd | 0 | 0.11 | 0.11 |
| 2769.T | Village Vanguard Co Ltd | 1.2 | 0.12 | 0.06 |
| 3058.T | Sanyodo Holdings Inc | 0.52 | 0.16 | 0.11 |
| 3159.T | Maruzen CHI Holdings Co Ltd | 1.29 | 0.24 | 0.12 |
| 3174.T | Happiness and D Co Ltd | 2.3 | 0.14 | 0.06 |
| 6186.T | Ichikura Co Ltd | 2.72 | 0.43 | 0.15 |
| 7506.T | House of Rose Co Ltd | 0.01 | 0.08 | 0.08 |
| 7514.T | Himaraya Co Ltd | 0.5 | 0.08 | 0.06 |
| 8230.T | Hasegawa Co Ltd | 0.41 | 0.03 | 0.02 |
| 9904.T | Verite Co Ltd | 0.15 | 0.16 | 0.14 |
| Low | High | |
| Unlevered beta | 0.07 | 0.11 |
| Relevered beta | 0.07 | 0.1 |
| Adjusted relevered beta | 0.38 | 0.4 |
9854.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 9854.T:
cost_of_equity (4.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.38) + 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.