5015.T WACC - Weighted Average Cost of Capital
The WACC of BP Castrol KK (5015.T) is 5.5%.
| Range | Selected | |
| Cost of equity | 6.1% - 9.1% | 7.6% |
| Tax rate | 32.7% - 33.5% | 33.1% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.8% - 6.2% | 5.5% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.78 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 9.1% |
| Tax rate | 32.7% | 33.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.8% | 6.2% |
| Selected WACC | 5.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5015.T | BP Castrol KK | 0.94 | 0.28 | 0.17 |
| 000159.SZ | Xinjiang International Industry Co Ltd | 0.38 | 1.09 | 0.87 |
| 024060.KQ | HeunguOil | 0.04 | 0.18 | 0.17 |
| 2734.T | Sala Corp | 0.88 | 0.81 | 0.51 |
| 5009.T | Fuji Kosan Co Ltd | 0.19 | 0.66 | 0.59 |
| 7486.T | Sanrin Co Ltd | 0.35 | 0.11 | 0.09 |
| 7490.T | Nissin Shoji Co Ltd | 1.22 | 0.13 | 0.07 |
| 8097.T | San-Ai Oil Co Ltd | 0.03 | 0.7 | 0.68 |
| 8131.T | Mitsuuroko Group Holdings Co Ltd | 0.22 | 0.97 | 0.85 |
| 8132.T | Sinanen Holdings Co Ltd | 0.07 | 0.24 | 0.23 |
| 8133.T | Itochu Enex Co Ltd | 0.28 | 0.62 | 0.52 |
| Low | High | |
| Unlevered beta | 0.23 | 0.52 |
| Relevered beta | 0.67 | 0.91 |
| Adjusted relevered beta | 0.78 | 0.94 |
5015.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 5015.T:
cost_of_equity (7.60%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.78) + 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.