AAPJ
Aap 101 Inc
Price:  
0.00 
USD
Volume:  
21,902,330.00
Japan | Machinery
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AAPJ WACC - Weighted Average Cost of Capital

The WACC of Aap 101 Inc (AAPJ) is 6.7%.

The Cost of Equity of Aap 101 Inc (AAPJ) is 6.45%.
The Cost of Debt of Aap 101 Inc (AAPJ) is 10.90%.

Range Selected
Cost of equity 5.50% - 7.40% 6.45%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 7.00% - 14.80% 10.90%
WACC 5.4% - 7.9% 6.7%
WACC

AAPJ WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.35 0.46
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.50% 7.40%
Tax rate 26.20% 27.00%
Debt/Equity ratio 0.17 0.17
Cost of debt 7.00% 14.80%
After-tax WACC 5.4% 7.9%
Selected WACC 6.7%

AAPJ'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 AAPJ:

cost_of_equity (6.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.35) + 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.