5285.T WACC - Weighted Average Cost of Capital
The WACC of Yamax Corp (5285.T) is 7.5%.
| Range | Selected | |
| Cost of equity | 6.4% - 9.6% | 8% |
| Tax rate | 30.9% - 32.2% | 31.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.0% - 8.9% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.82 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 9.6% |
| Tax rate | 30.9% | 32.2% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.0% | 8.9% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5285.T | Yamax Corp | 0.11 | 1.19 | 1.11 |
| 4026.T | Konoshima Chemical Co Ltd | 0.86 | 1.15 | 0.73 |
| 5237.T | Nozawa Corp | 0 | 0.49 | 0.49 |
| 5271.T | Toyo Asano Foundation Co Ltd | 2.6 | 0.5 | 0.18 |
| 5273.T | Mitani Sekisan Co Ltd | 0.01 | 1.09 | 1.08 |
| 5284.T | Yamau Co Ltd | 0.29 | 0.71 | 0.59 |
| 5352.T | Krosaki Harima Corp | 0.47 | 1.15 | 0.87 |
| 5355.T | Nippon Crucible Co Ltd | 0.47 | 0.12 | 0.09 |
| HUMEIND.KL | Hume Cement Industries Bhd | 0.15 | 1.12 | 1.02 |
| NCLIND.NS | Ncl Industries Ltd | 0.21 | 1.43 | 1.24 |
| Low | High | |
| Unlevered beta | 0.67 | 0.93 |
| Relevered beta | 0.73 | 1.01 |
| Adjusted relevered beta | 0.82 | 1.01 |
5285.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 5285.T:
cost_of_equity (8.00%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.82) + 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.