6484.T WACC - Weighted Average Cost of Capital
The WACC of KVK Corp (6484.T) is 7.3%.
| Range | Selected | |
| Cost of equity | 5.5% - 8.7% | 7.1% |
| Tax rate | 30.0% - 30.7% | 30.35% |
| Cost of debt | 4.0% - 85.7% | 44.85% |
| WACC | 5.5% - 9.0% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.67 | 0.89 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 8.7% |
| Tax rate | 30.0% | 30.7% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 85.7% |
| After-tax WACC | 5.5% | 9.0% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6484.T | KVK Corp | 0.01 | 0.2 | 0.2 |
| 5337.T | Danto Holdings Corp | 0.01 | 0.93 | 0.92 |
| 5358.T | Isolite Insulating Products Co Ltd | 0.04 | 1.72 | 1.68 |
| 5387.T | Chiyoda Ute Co Ltd | 0.69 | 0.76 | 0.52 |
| 5395.T | Riken Corundum Co Ltd | 0.07 | 1.01 | 0.96 |
| 5936.T | Toyo Shutter Co Ltd | 0.88 | 0.8 | 0.49 |
| 6230.T | Sanei Ltd | 0.31 | 0.53 | 0.43 |
| 7925.T | Maezawa Kasei Industries Co Ltd | 0.01 | 0.78 | 0.78 |
| 7949.T | Komatsu Wall Industry Co Ltd | 0 | 1.13 | 1.13 |
| 7953.T | Kikusui Chemical Industries Co Ltd | 0.49 | 0.32 | 0.24 |
| Low | High | |
| Unlevered beta | 0.51 | 0.84 |
| Relevered beta | 0.51 | 0.84 |
| Adjusted relevered beta | 0.67 | 0.89 |
6484.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 6484.T:
cost_of_equity (7.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.67) + 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.