4109.T WACC - Weighted Average Cost of Capital
The WACC of Stella Chemifa Corp (4109.T) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.6% - 9.0% | 7.8% |
| Tax rate | 31.0% - 32.1% | 31.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.2% - 8.4% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.85 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 9.0% |
| Tax rate | 31.0% | 32.1% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.2% | 8.4% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4109.T | Stella Chemifa Corp | 0.11 | 0.82 | 0.76 |
| 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 |
| 4461.T | DKS Co Ltd | 1.02 | 1.49 | 0.88 |
| 4531.T | Yuki Gosei Kogyo Co Ltd | 1.21 | 0.86 | 0.47 |
| 4635.T | Tokyo Printing Ink Mfg Co Ltd | 0.68 | 0.63 | 0.43 |
| 4885.T | Muromachi Chemicals Inc | 0.39 | 0.83 | 0.66 |
| 4960.T | Chemipro Kasei Kaisha Ltd | 1.19 | 0.36 | 0.2 |
| 5013.T | Yushiro Chemical Industry Co Ltd | 0.24 | 0.91 | 0.78 |
| Low | High | |
| Unlevered beta | 0.72 | 0.82 |
| Relevered beta | 0.78 | 0.88 |
| Adjusted relevered beta | 0.85 | 0.92 |
4109.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 4109.T:
cost_of_equity (7.80%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.85) + 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.