2811.T WACC - Weighted Average Cost of Capital
The WACC of Kagome Co Ltd (2811.T) is 5.7%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.6% | 6.35% |
| Tax rate | 25.7% - 28.2% | 26.95% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.6% - 6.7% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.6 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 7.6% |
| Tax rate | 25.7% | 28.2% |
| Debt/Equity ratio | 0.27 | 0.27 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.6% | 6.7% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2811.T | Kagome Co Ltd | 0.27 | 0.58 | 0.49 |
| 2108.T | Nippon Beet Sugar Manufacturing Co Ltd | 0.26 | 0.67 | 0.57 |
| 2201.T | Morinaga & Co Ltd | 0.1 | 0.17 | 0.16 |
| 2222.T | Kotobuki Spirits Co Ltd | 0 | 0.81 | 0.8 |
| 2229.T | Calbee Inc | 0.09 | 0.2 | 0.19 |
| 2590.T | DyDo Group Holdings Inc | 0.4 | 0.07 | 0.06 |
| 2613.T | J-Oil Mills Inc | 0.38 | 0.5 | 0.39 |
| 2805.T | S&B Foods Inc | 0.26 | 0.34 | 0.29 |
| 2815.T | Ariake Japan Co Ltd | 0 | 0.54 | 0.54 |
| 2915.T | Kenko Mayonnaise Co Ltd | 0.13 | 0.66 | 0.6 |
| Low | High | |
| Unlevered beta | 0.35 | 0.51 |
| Relevered beta | 0.4 | 0.61 |
| Adjusted relevered beta | 0.6 | 0.74 |
2811.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 2811.T:
cost_of_equity (6.35%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.6) + 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.