3598.T WACC - Weighted Average Cost of Capital

The WACC of Yamaki Co Ltd (3598.T) is 5.2%.

The Cost of Equity of Yamaki Co Ltd (3598.T) is 6.25%.

The Cost of Debt of Yamaki Co Ltd (3598.T) is 5.50%.

	Range	Selected
Cost of equity	4.70% - 7.80%	6.25%
Tax rate	6.90% - 20.50%	13.70%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.1% - 6.3%	5.2%

WACC

3598.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.54	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.70%	7.80%

Tax rate	6.90%	20.50%
Debt/Equity ratio	1.85	1.85
Cost of debt	4.00%	7.00%

After-tax WACC	4.1%	6.3%


Selected WACC	5.2%

3598.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 3598.T:

cost_of_equity (6.25%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.54) + 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.