9986.T
Zaoh Co Ltd
Price:  
2,421 
JPY
Volume:  
4,700
Japan | Trading Companies & Distributors

9986.T WACC - Weighted Average Cost of Capital

The WACC of Zaoh Co Ltd (9986.T) is 5.6%.

The Cost of Equity of Zaoh Co Ltd (9986.T) is 5.55%.
The Cost of Debt of Zaoh Co Ltd (9986.T) is 5%.

RangeSelected
Cost of equity4.4% - 6.7%5.55%
Tax rate16.6% - 20.6%18.6%
Cost of debt5.0% - 5.0%5%
WACC4.4% - 6.7%5.6%
WACC

9986.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.50.61
Additional risk adjustments0.0%0.5%
Cost of equity4.4%6.7%
Tax rate16.6%20.6%
Debt/Equity ratio
00
Cost of debt5.0%5.0%
After-tax WACC4.4%6.7%
Selected WACC5.6%

9986.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 9986.T:

cost_of_equity (5.55%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.5) + 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.