4167.T
Kokopelli Inc
Price:  
468 
JPY
Volume:  
26,000
Japan | Software

4167.T WACC - Weighted Average Cost of Capital

The WACC of Kokopelli Inc (4167.T) is 8.4%.

The Cost of Equity of Kokopelli Inc (4167.T) is 8.7%.
The Cost of Debt of Kokopelli Inc (4167.T) is 4.25%.

RangeSelected
Cost of equity7.2% - 10.2%8.7%
Tax rate27.7% - 32.9%30.3%
Cost of debt4.0% - 4.5%4.25%
WACC7.0% - 9.9%8.4%
WACC

4167.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.951.1
Additional risk adjustments0.0%0.5%
Cost of equity7.2%10.2%
Tax rate27.7%32.9%
Debt/Equity ratio
0.050.05
Cost of debt4.0%4.5%
After-tax WACC7.0%9.9%
Selected WACC8.4%

4167.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 4167.T:

cost_of_equity (8.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.95) + 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.