4619.T WACC - Weighted Average Cost of Capital
The WACC of Nihon Tokushu Toryo Co Ltd (4619.T) is 5.7%.
| Range | Selected | |
| Cost of equity | 4.9% - 7.0% | 5.95% |
| Tax rate | 23.9% - 27.3% | 25.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.7% - 6.7% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.57 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 7.0% |
| Tax rate | 23.9% | 27.3% |
| Debt/Equity ratio | 0.09 | 0.09 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.7% | 6.7% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4619.T | Nihon Tokushu Toryo Co Ltd | 0.08 | 0.63 | 0.59 |
| 3434.T | Alpha Corp | 1.69 | 0.67 | 0.29 |
| 3526.T | Ashimori Industry Co Ltd | 0.77 | 0.81 | 0.51 |
| 5184.T | Nichirin Co Ltd | 0.03 | 0.76 | 0.74 |
| 6461.T | Nippon Piston Ring Co Ltd | 0.88 | 0.69 | 0.41 |
| 6899.T | Asti Corp | 2.25 | 1.05 | 0.39 |
| 6937.T | Furukawa Battery Co Ltd | 0.2 | -0.24 | -0.21 |
| 7214.T | GMB Corp | 7.5 | 1.09 | 0.16 |
| 7254.T | Univance Corp | 0.25 | 1.67 | 1.4 |
| 7277.T | TBK Co Ltd | 0.96 | 0.57 | 0.33 |
| Low | High | |
| Unlevered beta | 0.36 | 0.45 |
| Relevered beta | 0.36 | 0.48 |
| Adjusted relevered beta | 0.57 | 0.65 |
4619.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 4619.T:
cost_of_equity (5.95%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.57) + 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.