4960.T WACC - Weighted Average Cost of Capital
The WACC of Chemipro Kasei Kaisha Ltd (4960.T) is 5.1%.
| Range | Selected | |
| Cost of equity | 5.6% - 9.8% | 7.7% |
| Tax rate | 24.3% - 28.7% | 26.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.1% - 6.0% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.68 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 9.8% |
| Tax rate | 24.3% | 28.7% |
| Debt/Equity ratio | 1.32 | 1.32 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.1% | 6.0% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4960.T | Chemipro Kasei Kaisha Ltd | 1.19 | 0.36 | 0.19 |
| 4005.T | Sumitomo Chemical Co Ltd | 2.77 | 0.71 | 0.23 |
| 4098.T | Titan Kogyo Ltd | 2.97 | 0.53 | 0.17 |
| 4102.T | Maruo Calcium Co Ltd | 0.64 | -0.07 | -0.05 |
| 4109.T | Stella Chemifa Corp | 0.11 | 0.82 | 0.76 |
| 4113.T | Taoka Chemical Co Ltd | 0.14 | 0.98 | 0.89 |
| 4364.T | Manac Incorporated | 0.05 | 0.3 | 0.29 |
| 4531.T | Yuki Gosei Kogyo Co Ltd | 1.21 | 0.86 | 0.46 |
| 4885.T | Muromachi Chemicals Inc | 0.39 | 0.83 | 0.65 |
| 5013.T | Yushiro Chemical Industry Co Ltd | 0.24 | 0.91 | 0.77 |
| Low | High | |
| Unlevered beta | 0.27 | 0.53 |
| Relevered beta | 0.52 | 1.06 |
| Adjusted relevered beta | 0.68 | 1.04 |
4960.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 4960.T:
cost_of_equity (7.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.68) + 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.