3105.T WACC - Weighted Average Cost of Capital
The WACC of Nisshinbo Holdings Inc (3105.T) is 4.4%.
| Range | Selected | |
| Cost of equity | 4.7% - 7.2% | 5.95% |
| Tax rate | 19.4% - 28.3% | 23.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 3.8% - 4.9% | 4.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.54 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 7.2% |
| Tax rate | 19.4% | 28.3% |
| Debt/Equity ratio | 1.37 | 1.37 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 3.8% | 4.9% |
| Selected WACC | 4.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3105.T | Nisshinbo Holdings Inc | 1.37 | 0.86 | 0.42 |
| 004800.KS | Hyosung Corp | 0.74 | 0.5 | 0.32 |
| 006840.KS | AK Holdings Inc | 15.02 | 0.35 | 0.03 |
| 3001.T | Katakura Industries Co Ltd | 0.12 | 0.77 | 0.7 |
| 3167.T | Tokai Holdings Corp | 0.44 | 0.28 | 0.21 |
| 6502.T | Toshiba Corp | 0.2 | 0.05 | 0.05 |
| 7932.T | Nippi Inc | 0.35 | 0.63 | 0.5 |
| 9045.T | Keihan Holdings Co Ltd | 1.18 | 0.4 | 0.21 |
| OMZZP.ME | OMZ PAO | 0.3 | 0.02 | 0.02 |
| TEXCHEM.KL | Texchem Resources Bhd | 4.13 | 0.26 | 0.06 |
| Low | High | |
| Unlevered beta | 0.15 | 0.25 |
| Relevered beta | 0.31 | 0.52 |
| Adjusted relevered beta | 0.54 | 0.68 |
3105.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 3105.T:
cost_of_equity (5.95%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.54) + 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.