2108.T WACC - Weighted Average Cost of Capital
The WACC of Nippon Beet Sugar Manufacturing Co Ltd (2108.T) is 5.5%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.1% | 6.1% |
| Tax rate | 31.4% - 32.5% | 31.95% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.7% - 6.3% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.61 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 7.1% |
| Tax rate | 31.4% | 32.5% |
| Debt/Equity ratio | 0.25 | 0.25 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.7% | 6.3% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2108.T | Nippon Beet Sugar Manufacturing Co Ltd | 0.25 | 0.67 | 0.57 |
| 2003.T | Nitto Fuji Flour Milling Co Ltd | 0.01 | 0.48 | 0.48 |
| 2117.T | Nissin Sugar Co Ltd | 0.24 | 0.45 | 0.39 |
| 2266.T | Rokko Butter Co Ltd | 0.26 | 0.65 | 0.56 |
| 2594.T | Key Coffee Inc | 0.19 | 0.11 | 0.1 |
| 2819.T | Ebara Foods Industry Inc | 0.02 | 0.49 | 0.49 |
| 2877.T | NittoBest Corp | 1.22 | 0.18 | 0.1 |
| 2903.T | Shinobu Foods Products Co Ltd | 0.39 | 0.39 | 0.3 |
| 2910.T | Rock Field Co Ltd | 0.03 | 0.37 | 0.36 |
| 2922.T | Natori Co Ltd | 0.18 | 0.4 | 0.36 |
| Low | High | |
| Unlevered beta | 0.36 | 0.42 |
| Relevered beta | 0.42 | 0.49 |
| Adjusted relevered beta | 0.61 | 0.66 |
2108.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 2108.T:
cost_of_equity (6.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.61) + 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.