9986.T WACC - Weighted Average Cost of Capital
The WACC of Zaoh Co Ltd (9986.T) is 5.6%.
| Range | Selected | |
| Cost of equity | 4.4% - 6.7% | 5.55% |
| Tax rate | 16.6% - 20.6% | 18.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.4% - 6.7% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.5 | 0.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.4% | 6.7% |
| Tax rate | 16.6% | 20.6% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.4% | 6.7% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9986.T | Zaoh Co Ltd | 0 | 0.18 | 0.18 |
| 1514.T | Sumiseki Holdings Inc | 0 | 1.5 | 1.5 |
| 2693.T | YKT Corp | 0.77 | 0.73 | 0.45 |
| 3537.T | Shoei Yakuhin Co Ltd | 0.1 | 0.43 | 0.39 |
| 7426.T | Yamadai Corp | 1.18 | 1.08 | 0.55 |
| 8077.T | TORQ Inc | 1.87 | 0.62 | 0.24 |
| 9909.T | Aiko Corp | 0.88 | 1.16 | 0.67 |
| 9914.T | Uematsu Shokai Co Ltd | 0.02 | 0.25 | 0.25 |
| 9929.T | Heiwa Paper Co Ltd | 0.55 | 0.18 | 0.12 |
| 9972.T | Altech Co Ltd | 1.74 | 0.52 | 0.21 |
| Low | High | |
| Unlevered beta | 0.25 | 0.42 |
| Relevered beta | 0.25 | 0.42 |
| Adjusted relevered beta | 0.5 | 0.61 |
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.