5268.T WACC - Weighted Average Cost of Capital
The WACC of Asahi Concrete Works Co Ltd (5268.T) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.3% | 6.25% |
| Tax rate | 33.0% - 33.6% | 33.3% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.0% - 7.0% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.62 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.3% |
| Tax rate | 33.0% | 33.6% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.0% | 7.0% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5268.T | Asahi Concrete Works Co Ltd | 0.08 | 0.45 | 0.42 |
| 4026.T | Konoshima Chemical Co Ltd | 0.87 | 1.15 | 0.73 |
| 5237.T | Nozawa Corp | 0 | 0.48 | 0.48 |
| 5271.T | Toyo Asano Foundation Co Ltd | 2.79 | 0.5 | 0.17 |
| 5282.T | Geostr Corp | 0.04 | 0.41 | 0.4 |
| 5284.T | Yamau Co Ltd | 0.32 | 0.66 | 0.55 |
| 5285.T | Yamax Corp | 0.13 | 1.14 | 1.05 |
| 5355.T | Nippon Crucible Co Ltd | 0.47 | 0.12 | 0.09 |
| 5357.T | Yotai Refractories Co Ltd | 0.01 | 0.55 | 0.54 |
| 9767.T | Nikken Kogaku Co Ltd | 0.2 | 0.08 | 0.07 |
| Low | High | |
| Unlevered beta | 0.41 | 0.5 |
| Relevered beta | 0.43 | 0.54 |
| Adjusted relevered beta | 0.62 | 0.69 |
5268.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 5268.T:
cost_of_equity (6.25%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.62) + 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.