3131.T
Shinden Hightex Corp
Price:  
2,916 
JPY
Volume:  
13,000
Japan | Electronic Equipment, Instruments & Components

3131.T WACC - Weighted Average Cost of Capital

The WACC of Shinden Hightex Corp (3131.T) is 6.7%.

The Cost of Equity of Shinden Hightex Corp (3131.T) is 10.4%.
The Cost of Debt of Shinden Hightex Corp (3131.T) is 4.25%.

RangeSelected
Cost of equity8.4% - 12.4%10.4%
Tax rate30.7% - 30.9%30.8%
Cost of debt4.0% - 4.5%4.25%
WACC5.6% - 7.8%6.7%
WACC

3131.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta1.151.41
Additional risk adjustments0.0%0.5%
Cost of equity8.4%12.4%
Tax rate30.7%30.9%
Debt/Equity ratio
0.970.97
Cost of debt4.0%4.5%
After-tax WACC5.6%7.8%
Selected WACC6.7%

3131.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 3131.T:

cost_of_equity (10.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.15) + 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.