TOPS.TA WACC - Weighted Average Cost of Capital
The WACC of Top Ramdor Systems & Computers 1990 Co Ltd (TOPS.TA) is 8.9%.
| Range | Selected | |
| Cost of equity | 9.2% - 11.6% | 10.4% |
| Tax rate | 5.6% - 9.7% | 7.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.0% - 9.7% | 8.9% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.72 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.2% | 11.6% |
| Tax rate | 5.6% | 9.7% |
| Debt/Equity ratio | 0.36 | 0.36 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.0% | 9.7% |
| Selected WACC | 8.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TOPS.TA | Top Ramdor Systems & Computers 1990 Co Ltd | 0.36 | 0.33 | 0.25 |
| 039420.KQ | KL-Net Corp | 0.01 | 0.39 | 0.39 |
| 065440.KQ | Eluon Corp | 0.12 | 0.69 | 0.62 |
| 4736.T | Nippon Rad Inc | 0 | 1.19 | 1.19 |
| 532372.BO | Virinchi Ltd | 1.05 | 1.24 | 0.63 |
| 6888.T | Acmos Inc | 0.09 | 0.48 | 0.44 |
| 8076.HK | Sing Lee Software (Group) Ltd | 1.14 | 0.86 | 0.42 |
| ADA.AX | Adacel Technologies Ltd | 0.3 | 0.79 | 0.62 |
| MOQ.AX | MOQ Ltd | 0.13 | 0.73 | 0.65 |
| SBW.AX | Shekel Brainweigh Ltd | 6.82 | 1.08 | 0.15 |
| SECURKLOUD.NS | Securekloud Technologies Ltd | 1.33 | 0.47 | 0.21 |
| Low | High | |
| Unlevered beta | 0.42 | 0.62 |
| Relevered beta | 0.58 | 0.72 |
| Adjusted relevered beta | 0.72 | 0.81 |
TOPS.TA'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 TOPS.TA:
cost_of_equity (10.40%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.72) + 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.