5283.T
Takamisawa Co Ltd
Price:  
3,095 
JPY
Volume:  
2,600
Japan | Construction Materials

5283.T WACC - Weighted Average Cost of Capital

The WACC of Takamisawa Co Ltd (5283.T) is 5.1%.

The Cost of Equity of Takamisawa Co Ltd (5283.T) is 9.05%.
The Cost of Debt of Takamisawa Co Ltd (5283.T) is 4.25%.

RangeSelected
Cost of equity7.6% - 10.5%9.05%
Tax rate35.4% - 40.1%37.75%
Cost of debt4.0% - 4.5%4.25%
WACC4.5% - 5.7%5.1%
WACC

5283.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta1.021.14
Additional risk adjustments0.0%0.5%
Cost of equity7.6%10.5%
Tax rate35.4%40.1%
Debt/Equity ratio
1.631.63
Cost of debt4.0%4.5%
After-tax WACC4.5%5.7%
Selected WACC5.1%

5283.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 5283.T:

cost_of_equity (9.05%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.02) + 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.