3202.T WACC - Weighted Average Cost of Capital
The WACC of Daitobo Co Ltd (3202.T) is 5.7%.
| Range | Selected | |
| Cost of equity | 6.6% - 10.2% | 8.4% |
| Tax rate | 27.7% - 30.6% | 29.15% |
| Cost of debt | 4.0% - 9.9% | 6.95% |
| WACC | 3.8% - 7.7% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.85 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 10.2% |
| Tax rate | 27.7% | 30.6% |
| Debt/Equity ratio | 3.1 | 3.1 |
| Cost of debt | 4.0% | 9.9% |
| After-tax WACC | 3.8% | 7.7% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3202.T | Daitobo Co Ltd | 3.1 | 0.29 | 0.09 |
| 2736.T | Festaria Holdings Co Ltd | 1.53 | 0.22 | 0.11 |
| 3045.T | Kawasaki & Co Ltd | 0.44 | 0.3 | 0.23 |
| 3376.T | Only Corp | 0.25 | 0.47 | 0.4 |
| 3550.T | Studio Atao Co Ltd | 0.07 | 0.51 | 0.48 |
| 7771.T | Nihon Seimitsu Co Ltd | 1.45 | 0.68 | 0.34 |
| 7810.T | Crossfor Co Ltd | 1 | 0.42 | 0.25 |
| 7878.T | Kohsai Co Ltd | 0.69 | 0.99 | 0.67 |
| 8107.T | Kimuratan Corp | 0.62 | 1.41 | 0.98 |
| 8215.T | Ginza Yamagataya Co Ltd | 0 | 0.24 | 0.24 |
| Low | High | |
| Unlevered beta | 0.25 | 0.36 |
| Relevered beta | 0.78 | 1.13 |
| Adjusted relevered beta | 0.85 | 1.09 |
3202.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 3202.T:
cost_of_equity (8.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.85) + 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.