3409.T WACC - Weighted Average Cost of Capital
The WACC of Kitanihon Spinning Co Ltd (3409.T) is 5.8%.
| Range | Selected | |
| Cost of equity | 4.8% - 7.1% | 5.95% |
| Tax rate | 9.3% - 14.9% | 12.1% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.7% - 7.0% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.55 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 7.1% |
| Tax rate | 9.3% | 14.9% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.7% | 7.0% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3409.T | Kitanihon Spinning Co Ltd | 0.09 | 0.51 | 0.47 |
| 3111.T | Omikenshi Co Ltd | 3.93 | 0.64 | 0.14 |
| 3123.T | Saibo Co Ltd | 1.89 | 0.47 | 0.18 |
| 3125.T | Shinnaigai Textile Ltd | 0.22 | 1 | 0.84 |
| 3204.T | Toabo Corp | 3.6 | 0.26 | 0.06 |
| 3512.T | Nippon Felt Co Ltd | 0.09 | 0.39 | 0.36 |
| 3515.T | Fuji Corp | 0.21 | 0.71 | 0.6 |
| 3571.T | Sotoh Co Ltd | 0.07 | 0.48 | 0.45 |
| 3577.T | Tokai Senko KK | 0.67 | 0.34 | 0.22 |
| 3578.T | Soko Seiren Co Ltd | 0.32 | 1.17 | 0.91 |
| Low | High | |
| Unlevered beta | 0.31 | 0.46 |
| Relevered beta | 0.33 | 0.49 |
| Adjusted relevered beta | 0.55 | 0.66 |
3409.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 3409.T:
cost_of_equity (5.95%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.55) + 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.