4078.T WACC - Weighted Average Cost of Capital
The WACC of Sakai Chemical Industry Co Ltd (4078.T) is 7.1%.
| Range | Selected | |
| Cost of equity | 8.3% - 11.1% | 9.7% |
| Tax rate | 28.3% - 38.1% | 33.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.2% - 7.9% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.13 | 1.22 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 11.1% |
| Tax rate | 28.3% | 38.1% |
| Debt/Equity ratio | 0.62 | 0.62 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.2% | 7.9% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4078.T | Sakai Chemical Industry Co Ltd | 0.62 | 1.04 | 0.73 |
| 4028.T | Ishihara Sangyo Kaisha Ltd | 0.99 | 1.18 | 0.7 |
| 4099.T | Shikoku Chemicals Corp | 0.37 | 1.24 | 0.99 |
| 4113.T | Taoka Chemical Co Ltd | 0.14 | 0.98 | 0.9 |
| 4187.T | Osaka Organic Chemical Industry Ltd | 0.06 | 1.31 | 1.26 |
| 4403.T | NOF Corp | 0.01 | 1 | 0.99 |
| 4461.T | DKS Co Ltd | 1.02 | 1.49 | 0.88 |
| 4617.T | Chugoku Marine Paints Ltd | 0.18 | 1.24 | 1.11 |
| 4635.T | Tokyo Printing Ink Mfg Co Ltd | 0.68 | 0.63 | 0.43 |
| 5013.T | Yushiro Chemical Industry Co Ltd | 0.24 | 0.91 | 0.78 |
| Low | High | |
| Unlevered beta | 0.84 | 0.93 |
| Relevered beta | 1.19 | 1.33 |
| Adjusted relevered beta | 1.13 | 1.22 |
4078.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 4078.T:
cost_of_equity (9.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.13) + 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.