5358.T WACC - Weighted Average Cost of Capital
The WACC of Isolite Insulating Products Co Ltd (5358.T) is 5.6%.
| Range | Selected | |
| Cost of equity | 4.7% - 6.7% | 5.7% |
| Tax rate | 28.9% - 29.5% | 29.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.6% - 6.5% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 0.8% | 1.2% |
| Equity market risk premium | 5.4% | 6.4% |
| Adjusted beta | 0.72 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 6.7% |
| Tax rate | 28.9% | 29.5% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.6% | 6.5% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5358.T | Isolite Insulating Products Co Ltd | 0.04 | 1.72 | 1.67 |
| 4224.T | Lonseal Corp | 0.07 | 0.36 | 0.35 |
| 5935.T | Gantan Beauty Industry Co Ltd | 0.21 | 0.27 | 0.23 |
| 5973.T | Toami Corp | 1.39 | 0.31 | 0.15 |
| 5997.T | Kyoritsu Air Tech Inc | 0.56 | 0.49 | 0.35 |
| 6230.T | Sanei Ltd | 0.31 | 0.54 | 0.45 |
| 6231.T | Kimura Kohki Co Ltd | 0.13 | 0.86 | 0.79 |
| 7896.T | Seven Industries Co Ltd | 0.81 | 0.27 | 0.17 |
| 7925.T | Maezawa Kasei Industries Co Ltd | 0.01 | 0.79 | 0.78 |
| 7953.T | Kikusui Chemical Industries Co Ltd | 0.39 | 0.32 | 0.25 |
| Low | High | |
| Unlevered beta | 0.31 | 0.39 |
| Relevered beta | 0.58 | 0.64 |
| Adjusted relevered beta | 0.72 | 0.76 |
5358.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 5358.T:
cost_of_equity (5.70%) = risk_free_rate (1.00%) + equity_risk_premium (5.90%) * adjusted_beta (0.72) + 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.