4025.T WACC - Weighted Average Cost of Capital
The WACC of Taki Chemical Co Ltd (4025.T) is 6.8%.
| Range | Selected | |
| Cost of equity | 5.9% - 8.4% | 7.15% |
| Tax rate | 29.1% - 30.6% | 29.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.6% - 7.9% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.73 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 8.4% |
| Tax rate | 29.1% | 30.6% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.6% | 7.9% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4025.T | Taki Chemical Co Ltd | 0.1 | 0.83 | 0.77 |
| 4031.T | Katakura & Co-op Agri Corp | 1.53 | 0.57 | 0.28 |
| 4365.T | Matsumoto Yushi-Seiyaku Co Ltd | 0.9 | 0.55 | 0.34 |
| 4952.T | SDS Biotech KK | 0.37 | 0.86 | 0.68 |
| 4955.T | Agro-Kanesho Co Ltd | 0.05 | 1.01 | 0.98 |
| 4979.T | OAT Agrio Co Ltd | 0.47 | 1.1 | 0.83 |
| 4992.T | Hokko Chemical Industry Co Ltd | 0.03 | 1 | 0.98 |
| 4996.T | Kumiai Chemical Industry Co Ltd | 0.7 | 0.69 | 0.46 |
| 4997.T | Nihon Nohyaku Co Ltd | 0.49 | 0.77 | 0.57 |
| 4998.T | Fumakilla Ltd | 0.92 | 0.48 | 0.29 |
| Low | High | |
| Unlevered beta | 0.53 | 0.72 |
| Relevered beta | 0.6 | 0.78 |
| Adjusted relevered beta | 0.73 | 0.85 |
4025.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 4025.T:
cost_of_equity (7.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.73) + 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.