2445.T
Takamiya Co Ltd
Price:  
324.00 
JPY
Volume:  
76,200.00
Japan | Trading Companies & Distributors
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

2445.T WACC - Weighted Average Cost of Capital

The WACC of Takamiya Co Ltd (2445.T) is 4.7%.

The Cost of Equity of Takamiya Co Ltd (2445.T) is 10.10%.
The Cost of Debt of Takamiya Co Ltd (2445.T) is 4.25%.

Range Selected
Cost of equity 8.80% - 11.40% 10.10%
Tax rate 36.70% - 40.00% 38.35%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.3% - 5.1% 4.7%
WACC

2445.T WACC calculation

Category Low High
Long-term bond rate 1.4% 1.9%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.22 1.26
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.80% 11.40%
Tax rate 36.70% 40.00%
Debt/Equity ratio 2.63 2.63
Cost of debt 4.00% 4.50%
After-tax WACC 4.3% 5.1%
Selected WACC 4.7%

2445.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 2445.T:

cost_of_equity (10.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.22) + 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.