4362.T WACC - Weighted Average Cost of Capital
The WACC of Nippon Fine Chemical Co Ltd (4362.T) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.7% - 8.2% | 6.95% |
| Tax rate | 27.9% - 29.1% | 28.5% |
| Cost of debt | 4.0% - 9.6% | 6.8% |
| WACC | 5.7% - 8.2% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.71 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 8.2% |
| Tax rate | 27.9% | 29.1% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 9.6% |
| After-tax WACC | 5.7% | 8.2% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4362.T | Nippon Fine Chemical Co Ltd | 0.02 | 1.28 | 1.26 |
| 4080.T | Tanaka Chemical Corp | 0.69 | 1.46 | 0.98 |
| 4082.T | Daiichi Kigenso Kagaku Kogyo Co Ltd | 1.58 | 0.81 | 0.38 |
| 4094.T | Nihon Kagaku Sangyo Co Ltd | 0.01 | 0.58 | 0.58 |
| 4100.T | Toda Kogyo Corp | 4.69 | 0.94 | 0.22 |
| 4112.T | Hodogaya Chemical Co Ltd | 0.41 | 1.4 | 1.08 |
| 4365.T | Matsumoto Yushi-Seiyaku Co Ltd | 0 | 0.55 | 0.55 |
| 4963.T | Seiko PMC Corp | 0.19 | 0.65 | 0.57 |
| 4999.T | Cemedine Co Ltd | 0.02 | 1.01 | 0.99 |
| 7940.T | Wavelock Holdings Co Ltd | 0.85 | 0.61 | 0.38 |
| Low | High | |
| Unlevered beta | 0.56 | 0.74 |
| Relevered beta | 0.57 | 0.72 |
| Adjusted relevered beta | 0.71 | 0.81 |
4362.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 4362.T:
cost_of_equity (6.95%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.71) + 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.