9889.T
JBCC Holdings Inc
Price:  
1,292 
JPY
Volume:  
136,200
Japan | IT Services

9889.T WACC - Weighted Average Cost of Capital

The WACC of JBCC Holdings Inc (9889.T) is 7.2%.

The Cost of Equity of JBCC Holdings Inc (9889.T) is 7.35%.
The Cost of Debt of JBCC Holdings Inc (9889.T) is 4.25%.

RangeSelected
Cost of equity6.1% - 8.6%7.35%
Tax rate30.5% - 31.3%30.9%
Cost of debt4.0% - 4.5%4.25%
WACC6.0% - 8.4%7.2%
WACC

9889.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.770.87
Additional risk adjustments0.0%0.5%
Cost of equity6.1%8.6%
Tax rate30.5%31.3%
Debt/Equity ratio
0.030.03
Cost of debt4.0%4.5%
After-tax WACC6.0%8.4%
Selected WACC7.2%

9889.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 9889.T:

cost_of_equity (7.35%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.77) + 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.