9876.T WACC - Weighted Average Cost of Capital

The WACC of Cox Co Ltd (9876.T) is 6.3%.

The Cost of Equity of Cox Co Ltd (9876.T) is 9.10%.

The Cost of Debt of Cox Co Ltd (9876.T) is 4.25%.

	Range	Selected
Cost of equity	7.10% - 11.10%	9.10%
Tax rate	15.90% - 20.80%	18.35%
Cost of debt	4.00% - 4.50%	4.25%
WACC	5.3% - 7.3%	6.3%

WACC

9876.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.94	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	11.10%

Tax rate	15.90%	20.80%
Debt/Equity ratio	1	1
Cost of debt	4.00%	4.50%

After-tax WACC	5.3%	7.3%


Selected WACC	6.3%

9876.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 9876.T:

cost_of_equity (9.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.94) + 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.