4026.T
Konoshima Chemical Co Ltd
Price:  
1,290.00 
JPY
Volume:  
52,300.00
Japan | Construction Materials
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4026.T WACC - Weighted Average Cost of Capital

The WACC of Konoshima Chemical Co Ltd (4026.T) is 6.3%.

The Cost of Equity of Konoshima Chemical Co Ltd (4026.T) is 9.10%.
The Cost of Debt of Konoshima Chemical Co Ltd (4026.T) is 4.25%.

Range Selected
Cost of equity 7.70% - 10.50% 9.10%
Tax rate 27.90% - 28.40% 28.15%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.5% - 7.1% 6.3%
WACC

4026.T WACC calculation

Category Low High
Long-term bond rate 1.4% 1.9%
Equity market risk premium 6.1% 7.1%
Adjusted beta 1.03 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.50%
Tax rate 27.90% 28.40%
Debt/Equity ratio 0.88 0.88
Cost of debt 4.00% 4.50%
After-tax WACC 5.5% 7.1%
Selected WACC 6.3%

4026.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 4026.T:

cost_of_equity (9.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.03) + 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.