4102.T
Maruo Calcium Co Ltd
Price:  
1,361 
JPY
Volume:  
400
Japan | Chemicals

4102.T WACC - Weighted Average Cost of Capital

The WACC of Maruo Calcium Co Ltd (4102.T) is 4.2%.

The Cost of Equity of Maruo Calcium Co Ltd (4102.T) is 5.1%.
The Cost of Debt of Maruo Calcium Co Ltd (4102.T) is 4.25%.

RangeSelected
Cost of equity4.3% - 5.9%5.1%
Tax rate31.2% - 33.3%32.25%
Cost of debt4.0% - 4.5%4.25%
WACC3.6% - 4.7%4.2%
WACC

4102.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.470.49
Additional risk adjustments0.0%0.5%
Cost of equity4.3%5.9%
Tax rate31.2%33.3%
Debt/Equity ratio
0.720.72
Cost of debt4.0%4.5%
After-tax WACC3.6%4.7%
Selected WACC4.2%

4102.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 4102.T:

cost_of_equity (5.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.47) + 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.