7615.T WACC - Weighted Average Cost of Capital
The WACC of Kyoto Kimono Yuzen Co Ltd (7615.T) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.0% - 8.9% | 6.95% |
| Tax rate | 3.5% - 5.0% | 4.25% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.7% - 8.2% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.43 | 0.77 |
| Additional risk adjustments | 1.0% | 1.5% |
| Cost of equity | 5.0% | 8.9% |
| Tax rate | 3.5% | 5.0% |
| Debt/Equity ratio | 0.44 | 0.44 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.7% | 8.2% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7615.T | Kyoto Kimono Yuzen Co Ltd | 0.44 | 0.69 | 0.49 |
| 2668.T | Tabio Corp | 0.12 | 0.11 | 0.1 |
| 2726.T | PAL Group Holdings Co Ltd | 0.04 | -0.53 | -0.51 |
| 3083.T | C'sMEN Co Ltd | 0.17 | 1.15 | 0.99 |
| 3189.T | ANAP Inc | 0.13 | 0.98 | 0.87 |
| 3415.T | Tokyo Base Co Ltd | 0.22 | 0.9 | 0.74 |
| 7416.T | Haruyama Holdings Inc | 0.76 | 0.13 | 0.08 |
| 7545.T | Nishimatsuya Chain Co Ltd | 0.01 | 0.11 | 0.11 |
| 7564.T | Workman Co Ltd | 0 | -0.21 | -0.21 |
| 8166.T | Taka-Q Co Ltd | 0.75 | 0.78 | 0.45 |
| Low | High | |
| Unlevered beta | 0.11 | 0.47 |
| Relevered beta | 0.15 | 0.66 |
| Adjusted relevered beta | 0.43 | 0.77 |
7615.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 7615.T:
cost_of_equity (6.95%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.43) + risk_adjustments (1.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.