3001.T WACC - Weighted Average Cost of Capital
The WACC of Katakura Industries Co Ltd (3001.T) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.4% - 8.4% | 6.9% |
| Tax rate | 30.5% - 31.8% | 31.15% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.1% - 7.8% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.65 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 8.4% |
| Tax rate | 30.5% | 31.8% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.1% | 7.8% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3001.T | Katakura Industries Co Ltd | 0.13 | 0.75 | 0.69 |
| 3105.T | Nisshinbo Holdings Inc | 1.39 | 0.86 | 0.44 |
| 532485.BO | Balmer Lawrie Investments Ltd | 0.06 | 0.77 | 0.74 |
| 600805.SS | Jiangsu Yueda Investment Co Ltd | 0.84 | 1.15 | 0.73 |
| 6502.T | Toshiba Corp | 0.2 | 0.05 | 0.05 |
| 7932.T | Nippi Inc | 0.34 | 0.55 | 0.44 |
| BALMLAWRIE.NS | Balmer Lawrie and Company Ltd | 0.03 | 1.88 | 1.84 |
| BNBR.JK | Bakrie & Brothers Tbk PT | 0.25 | 1.1 | 0.94 |
| SUC.BK | Saha-Union PCL | 0.06 | 0.22 | 0.21 |
| TEXCHEM.KL | Texchem Resources Bhd | 4.07 | 0.23 | 0.06 |
| Low | High | |
| Unlevered beta | 0.44 | 0.7 |
| Relevered beta | 0.48 | 0.76 |
| Adjusted relevered beta | 0.65 | 0.84 |
3001.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 3001.T:
cost_of_equity (6.90%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.65) + 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.