4627.T WACC - Weighted Average Cost of Capital
The WACC of Natoco Co Ltd (4627.T) is 8.4%.
| Range | Selected | |
| Cost of equity | 7.3% - 9.8% | 8.55% |
| Tax rate | 28.8% - 29.2% | 29% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 7.2% - 9.7% | 8.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.96 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.3% | 9.8% |
| Tax rate | 28.8% | 29.2% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 7.2% | 9.7% |
| Selected WACC | 8.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4627.T | Natoco Co Ltd | 0.02 | 0.49 | 0.48 |
| 4022.T | Rasa Industries Ltd | 0.25 | 1.08 | 0.91 |
| 4107.T | Ise Chemicals Corp | 0 | 1.23 | 1.23 |
| 4222.T | Kodama Chemical Industry Co Ltd | 0.44 | 1.62 | 1.24 |
| 4251.T | Keiwa Inc | 0.15 | 1.14 | 1.03 |
| 4623.T | Asahipen Corp | 0.52 | 0.11 | 0.08 |
| 6619.T | W-Scope Corp | 0.7 | 1.61 | 1.07 |
| 6776.T | Tensho Electric Industries Co Ltd | 1.79 | 0.6 | 0.26 |
| 7908.T | Kimoto Co Ltd | 0 | 1.11 | 1.11 |
| 8152.T | Somar Corp | 0.5 | 1.26 | 0.93 |
| Low | High | |
| Unlevered beta | 0.92 | 1.05 |
| Relevered beta | 0.94 | 1.06 |
| Adjusted relevered beta | 0.96 | 1.04 |
4627.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 4627.T:
cost_of_equity (8.55%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.96) + 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.