5956.T WACC - Weighted Average Cost of Capital
The WACC of Toso Co Ltd (5956.T) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.8% - 8.9% | 7.35% |
| Tax rate | 35.1% - 38.2% | 36.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.0% - 7.4% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.71 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.8% | 8.9% |
| Tax rate | 35.1% | 38.2% |
| Debt/Equity ratio | 0.31 | 0.31 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.0% | 7.4% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5956.T | Toso Co Ltd | 0.38 | 0.1 | 0.08 |
| 1575.HK | Morris Holdings Ltd | 1.61 | 0.29 | 0.14 |
| 7840.T | France Bed Holdings Co Ltd | 0.39 | 0.63 | 0.5 |
| 7989.T | Tachikawa Corp | 0 | 0.44 | 0.44 |
| 8427.TW | Keysheen (CAYMAN) Holdings Co Ltd | 0.17 | 1.18 | 1.06 |
| 9935.TW | Ching Feng Home Fashions Co Ltd | 0.75 | 1.05 | 0.71 |
| LATITUD.KL | Latitude Tree Holdings Bhd | 0.48 | 1.03 | 0.79 |
| LIIHEN.KL | Lii Hen Industries Bhd | 0.15 | 0.92 | 0.84 |
| POHUAT.KL | Poh Huat Resources Holdings Bhd | 0.05 | 0.76 | 0.74 |
| TCMC.BK | TCM Corporation PCL | 10.73 | 1.86 | 0.23 |
| Low | High | |
| Unlevered beta | 0.48 | 0.72 |
| Relevered beta | 0.57 | 0.87 |
| Adjusted relevered beta | 0.71 | 0.91 |
5956.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 5956.T:
cost_of_equity (7.35%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.71) + 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.