3604.T WACC - Weighted Average Cost of Capital
The WACC of Kawamoto Corp (3604.T) is 4.8%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.2% | 6.2% |
| Tax rate | 28.7% - 30.7% | 29.7% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.1% - 5.4% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.61 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.2% |
| Tax rate | 28.7% | 30.7% |
| Debt/Equity ratio | 0.79 | 0.79 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.1% | 5.4% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3604.T | Kawamoto Corp | 0.79 | 0.65 | 0.42 |
| 4549.T | Eiken Chemical Co Ltd | 0.06 | 0.56 | 0.54 |
| 4550.T | Nissui Pharmaceutical Co Ltd | 0 | 0.36 | 0.36 |
| 4556.T | Kainos Laboratories Inc | 0.11 | 0.24 | 0.22 |
| 5187.T | Create Medic Co Ltd | 0.09 | 0.27 | 0.26 |
| 7702.T | JMS Co Ltd | 2.29 | 0.74 | 0.28 |
| 7743.T | Seed Co Ltd | 1.83 | 0.7 | 0.31 |
| 7782.T | Sincere Co Ltd | 0.56 | -0.16 | -0.12 |
| 7963.T | Koken Ltd | 0.59 | 0.23 | 0.16 |
| 7979.T | Shofu Inc | 0.84 | 0.86 | 0.54 |
| Low | High | |
| Unlevered beta | 0.27 | 0.33 |
| Relevered beta | 0.42 | 0.51 |
| Adjusted relevered beta | 0.61 | 0.67 |
3604.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 3604.T:
cost_of_equity (6.20%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.61) + 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.