7438.T WACC - Weighted Average Cost of Capital
The WACC of Kondotec Inc (7438.T) is 6.9%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.7% | 7.45% |
| Tax rate | 35.9% - 37.7% | 36.8% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.8% - 8.0% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.78 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.7% |
| Tax rate | 35.9% | 37.7% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.8% | 8.0% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7438.T | Kondotec Inc | 0.13 | 0.67 | 0.62 |
| 5262.T | Nippon Hume Corp | 0.03 | 0.93 | 0.91 |
| 5358.T | Isolite Insulating Products Co Ltd | 0.04 | 1.72 | 1.68 |
| 5391.T | A&A Material Corp | 0.53 | 0.83 | 0.62 |
| 5959.T | Okabe Co Ltd | 0.16 | 0.61 | 0.55 |
| 6231.T | Kimura Kohki Co Ltd | 0.13 | 0.89 | 0.82 |
| 6458.T | Sinko Industries Ltd | 0.03 | 0.74 | 0.72 |
| 7822.T | Eidai Co Ltd | 2.43 | 0.5 | 0.2 |
| 7879.T | Noda Corp | 0.87 | 0.47 | 0.3 |
| 7949.T | Komatsu Wall Industry Co Ltd | 0 | 1.13 | 1.13 |
| Low | High | |
| Unlevered beta | 0.62 | 0.76 |
| Relevered beta | 0.67 | 0.82 |
| Adjusted relevered beta | 0.78 | 0.88 |
7438.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 7438.T:
cost_of_equity (7.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.78) + 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.