3192.T WACC - Weighted Average Cost of Capital

The WACC of Shirohato Co Ltd (3192.T) is 6.8%.

The Cost of Equity of Shirohato Co Ltd (3192.T) is 8.15%.

The Cost of Debt of Shirohato Co Ltd (3192.T) is 8.60%.

	Range	Selected
Cost of equity	6.70% - 9.60%	8.15%
Tax rate	27.70% - 30.60%	29.15%
Cost of debt	4.00% - 13.20%	8.60%
WACC	4.2% - 9.3%	6.8%

WACC

3192.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.86	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.70%	9.60%

Tax rate	27.70%	30.60%
Debt/Equity ratio	1.83	1.83
Cost of debt	4.00%	13.20%

After-tax WACC	4.2%	9.3%


Selected WACC	6.8%

3192.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 3192.T:

cost_of_equity (8.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.86) + 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.