4999.T WACC - Weighted Average Cost of Capital

The WACC of Cemedine Co Ltd (4999.T) is 7.7%.

The Cost of Equity of Cemedine Co Ltd (4999.T) is 7.80%.

The Cost of Debt of Cemedine Co Ltd (4999.T) is 4.25%.

	Range	Selected
Cost of equity	6.20% - 9.40%	7.80%
Tax rate	26.30% - 26.80%	26.55%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.1% - 9.3%	7.7%

WACC

4999.T WACC calculation

Category	Low	High

Long-term bond rate	0.8%	1.2%
Equity market risk premium	5.4%	6.4%
Adjusted beta	1	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.20%	9.40%

Tax rate	26.30%	26.80%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	4.50%

After-tax WACC	6.1%	9.3%


Selected WACC	7.7%

4999.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 4999.T:

cost_of_equity (7.80%) = risk_free_rate (1.00%) + equity_risk_premium (5.90%) * adjusted_beta (1) + 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.