4026.T WACC - Weighted Average Cost of Capital
The WACC of Konoshima Chemical Co Ltd (4026.T) is 5.7%.
| Range | Selected | |
| Cost of equity | 6.5% - 8.8% | 7.65% |
| Tax rate | 24.7% - 27.8% | 26.25% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.0% - 6.4% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.83 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 8.8% |
| Tax rate | 24.7% | 27.8% |
| Debt/Equity ratio | 0.79 | 0.79 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.0% | 6.4% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4026.T | Konoshima Chemical Co Ltd | 0.79 | 1.22 | 0.77 |
| 5237.T | Nozawa Corp | 0 | 0.49 | 0.49 |
| 5268.T | Asahi Concrete Works Co Ltd | 0.08 | 0.51 | 0.48 |
| 5271.T | Toyo Asano Foundation Co Ltd | 2.62 | 0.45 | 0.16 |
| 5282.T | Geostr Corp | 0.03 | 0.43 | 0.42 |
| 5284.T | Yamau Co Ltd | 0.27 | 0.74 | 0.62 |
| 5285.T | Yamax Corp | 0.09 | 1.33 | 1.24 |
| 5355.T | Nippon Crucible Co Ltd | 0.47 | 0.11 | 0.08 |
| 5357.T | Yotai Refractories Co Ltd | 0.01 | 0.47 | 0.47 |
| 5363.T | TYK Corp | 0.13 | 0.79 | 0.73 |
| Low | High | |
| Unlevered beta | 0.48 | 0.54 |
| Relevered beta | 0.75 | 0.85 |
| Adjusted relevered beta | 0.83 | 0.9 |
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 (7.65%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.83) + 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.