2300.T WACC - Weighted Average Cost of Capital
The WACC of Kyokuto Co Ltd (2300.T) is 5.6%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.6% | 6.55% |
| Tax rate | 15.7% - 23.5% | 19.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.8% - 6.3% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.67 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.6% |
| Tax rate | 15.7% | 23.5% |
| Debt/Equity ratio | 0.46 | 0.46 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.8% | 6.3% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2300.T | Kyokuto Co Ltd | 0.46 | 0.42 | 0.31 |
| 2406.T | Arte Salon Holdings Inc | 0.4 | 0.74 | 0.56 |
| 2424.T | Brass Corp | 1.12 | 0.81 | 0.44 |
| 3041.T | Beauty Kadan Co Ltd | 0.66 | 1.04 | 0.69 |
| 4679.T | Taya Co Ltd | 0.31 | 0.19 | 0.15 |
| 6060.T | Cocolonet Co Ltd | 0.08 | 0.51 | 0.48 |
| 6181.T | Tameny Inc | 0.99 | 0.78 | 0.44 |
| 6574.T | Convano Inc | 0.02 | 0.15 | 0.14 |
| 7086.T | Kizuna Holdings Corp | 1.77 | 0.22 | 0.1 |
| 7578.T | Nichiryoku Co Ltd | 1.06 | 0.83 | 0.46 |
| Low | High | |
| Unlevered beta | 0.39 | 0.45 |
| Relevered beta | 0.51 | 0.6 |
| Adjusted relevered beta | 0.67 | 0.73 |
2300.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 2300.T:
cost_of_equity (6.55%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.67) + 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.