3123.T WACC - Weighted Average Cost of Capital
The WACC of Saibo Co Ltd (3123.T) is 4.2%.
| Range | Selected | |
| Cost of equity | 5.0% - 7.9% | 6.45% |
| Tax rate | 26.6% - 27.5% | 27.05% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 3.6% - 4.8% | 4.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.59 | 0.77 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.0% | 7.9% |
| Tax rate | 26.6% | 27.5% |
| Debt/Equity ratio | 2.01 | 2.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 3.6% | 4.8% |
| Selected WACC | 4.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3123.T | Saibo Co Ltd | 2.01 | 0.47 | 0.19 |
| 130500.KQ | GH Advanced Materials Inc | 1.95 | 0.19 | 0.08 |
| 3103.T | Unitika Ltd | 10.32 | 0.95 | 0.11 |
| 3111.T | Omikenshi Co Ltd | 3.81 | 0.76 | 0.2 |
| 3125.T | Shinnaigai Textile Ltd | 0.22 | 1 | 0.86 |
| 3204.T | Toabo Corp | 3.68 | 0.27 | 0.07 |
| 3512.T | Nippon Felt Co Ltd | 0.09 | 0.39 | 0.36 |
| 3515.T | Fuji Corp | 0.21 | 0.71 | 0.62 |
| 3571.T | Sotoh Co Ltd | 0.07 | 0.49 | 0.46 |
| BRFL.NS | Bombay Rayon Fashions Ltd | 61.89 | 1.12 | 0.02 |
| Low | High | |
| Unlevered beta | 0.16 | 0.27 |
| Relevered beta | 0.39 | 0.66 |
| Adjusted relevered beta | 0.59 | 0.77 |
3123.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 3123.T:
cost_of_equity (6.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.59) + 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.