The WACC of Shinden Hightex Corp (3131.T) is 6.7%.
Range | Selected | |
Cost of equity | 8.4% - 12.4% | 10.4% |
Tax rate | 30.7% - 30.9% | 30.8% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 5.6% - 7.8% | 6.7% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 1.15 | 1.41 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 8.4% | 12.4% |
Tax rate | 30.7% | 30.9% |
Debt/Equity ratio | 0.97 | 0.97 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 5.6% | 7.8% |
Selected WACC | 6.7% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
3131.T | Shinden Hightex Corp | 0.97 | 1.25 | 0.75 |
2715.T | Elematec Corp | 0 | 0.91 | 0.91 |
2737.T | Tomen Devices Corp | 0.35 | 1.41 | 1.14 |
3321.T | Mitachi Co Ltd | 0.06 | 0.74 | 0.71 |
6973.T | Kyoei Sangyo Co Ltd | 0.61 | 0.59 | 0.41 |
7480.T | Suzuden Corp | 0.03 | 0.5 | 0.49 |
7505.T | Fuso Dentsu Co Ltd | 0.1 | 0.47 | 0.44 |
8084.T | Ryoden Corp | 0.04 | 1.07 | 1.04 |
8159.T | Tachibana Eletech Co Ltd | 0.16 | 1.19 | 1.08 |
8275.T | Forval Corp | 0.07 | 1.46 | 1.39 |
Low | High | |
Unlevered beta | 0.73 | 0.96 |
Relevered beta | 1.22 | 1.61 |
Adjusted relevered beta | 1.15 | 1.41 |
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.