5018.T WACC - Weighted Average Cost of Capital
The WACC of Moresco Corp (5018.T) is 6.6%.
| Range | Selected | |
| Cost of equity | 6.5% - 9.8% | 8.15% |
| Tax rate | 28.1% - 29.3% | 28.7% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.4% - 7.8% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.83 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 9.8% |
| Tax rate | 28.1% | 29.3% |
| Debt/Equity ratio | 0.45 | 0.45 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.4% | 7.8% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5018.T | Moresco Corp | 0.45 | 0.47 | 0.36 |
| 4022.T | Rasa Industries Ltd | 0.26 | 1.1 | 0.93 |
| 4115.T | Honshu Chemical Industry Co Ltd | 0.08 | 0.92 | 0.87 |
| 4229.T | Gun Ei Chemical Industry Co Ltd | 0.04 | 0.84 | 0.82 |
| 4406.T | New Japan Chemical Co Ltd | 0.91 | 0.88 | 0.54 |
| 4615.T | Shinto Paint Co Ltd | 1.14 | 0.28 | 0.15 |
| 4629.T | Daishin Chemical Co Ltd | 0 | 0.22 | 0.22 |
| 4972.T | Soken Chemical & Engineering Co Ltd | 0.17 | 0.89 | 0.8 |
| 7927.T | Muto Seiko Co | 0.57 | 0.83 | 0.59 |
| 8152.T | Somar Corp | 0.47 | 1.23 | 0.92 |
| Low | High | |
| Unlevered beta | 0.57 | 0.81 |
| Relevered beta | 0.75 | 1.06 |
| Adjusted relevered beta | 0.83 | 1.04 |
5018.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 5018.T:
cost_of_equity (8.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.83) + 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.