5352.T WACC - Weighted Average Cost of Capital
The WACC of Krosaki Harima Corp (5352.T) is 6.0%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.1% | 7.15% |
| Tax rate | 27.1% - 28.1% | 27.6% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.3% - 6.7% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.79 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.1% |
| Tax rate | 27.1% | 28.1% |
| Debt/Equity ratio | 0.4 | 0.4 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.3% | 6.7% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5352.T | Krosaki Harima Corp | 0.4 | 1.14 | 0.88 |
| 5232.T | Sumitomo Osaka Cement Co Ltd | 0.63 | 0.77 | 0.52 |
| 5273.T | Mitani Sekisan Co Ltd | 0.01 | 1.08 | 1.07 |
| 5282.T | Geostr Corp | 0.04 | 0.41 | 0.4 |
| 5283.T | Takamisawa Co Ltd | 1.62 | 0.49 | 0.22 |
| 5284.T | Yamau Co Ltd | 0.32 | 0.66 | 0.54 |
| 5288.T | Asia Pile Holdings Corp | 0.41 | 0.65 | 0.5 |
| 5290.T | Vertex Corp | 0.08 | 0.6 | 0.56 |
| 5357.T | Yotai Refractories Co Ltd | 0.01 | 0.55 | 0.54 |
| 5363.T | TYK Corp | 0.15 | 0.79 | 0.71 |
| Low | High | |
| Unlevered beta | 0.53 | 0.55 |
| Relevered beta | 0.69 | 0.72 |
| Adjusted relevered beta | 0.79 | 0.81 |
5352.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 5352.T:
cost_of_equity (7.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.79) + 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.