5644.T WACC - Weighted Average Cost of Capital
The WACC of Metalart Corp (5644.T) is 6.8%.
| Range | Selected | |
| Cost of equity | 7.0% - 9.7% | 8.35% |
| Tax rate | 27.4% - 28.8% | 28.1% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.9% - 7.8% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.92 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 9.7% |
| Tax rate | 27.4% | 28.8% |
| Debt/Equity ratio | 0.4 | 0.4 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.9% | 7.8% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5644.T | Metalart Corp | 0.4 | 0.92 | 0.71 |
| 4619.T | Nihon Tokushu Toryo Co Ltd | 0.07 | 0.68 | 0.64 |
| 5184.T | Nichirin Co Ltd | 0.03 | 0.77 | 0.75 |
| 5994.T | Fine Sinter Co Ltd | 4.98 | 0.5 | 0.11 |
| 7218.T | Tanaka Seimitsu Kogyo Co Ltd | 0.42 | 0.48 | 0.37 |
| 7235.T | Tokyo Radiator Mfg Co Ltd | 1.01 | 1 | 0.58 |
| 7254.T | Univance Corp | 0.05 | 1.69 | 1.64 |
| 7271.T | Yasunaga Corp | 2.68 | 0.87 | 0.3 |
| 7299.T | Fuji Oozx Inc | 0.14 | 0.98 | 0.88 |
| 7628.T | Ohashi Technica Inc | 1.03 | 0.94 | 0.54 |
| Low | High | |
| Unlevered beta | 0.56 | 0.67 |
| Relevered beta | 0.88 | 1.03 |
| Adjusted relevered beta | 0.92 | 1.02 |
5644.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 5644.T:
cost_of_equity (8.35%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.92) + 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.