7915.T WACC - Weighted Average Cost of Capital
The WACC of Nissha Co Ltd (7915.T) is 6.7%.
| Range | Selected | |
| Cost of equity | 8.6% - 11.6% | 10.1% |
| Tax rate | 14.6% - 18.4% | 16.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.9% - 7.4% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.17 | 1.29 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.6% | 11.6% |
| Tax rate | 14.6% | 18.4% |
| Debt/Equity ratio | 1.1 | 1.1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.9% | 7.4% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7915.T | Nissha Co Ltd | 1.1 | 1.19 | 0.62 |
| 5214.T | Nippon Electric Glass Co Ltd | 0.37 | 0.59 | 0.45 |
| 6768.T | Tamura Corp | 0.91 | 1.38 | 0.79 |
| 6787.T | Meiko Electronics Co Ltd | 0.56 | 1.91 | 1.3 |
| 6804.T | Hosiden Corp | 0.09 | 0.91 | 0.85 |
| 6807.T | Japan Aviation Electronics Industry Ltd | 0.21 | 1.07 | 0.91 |
| 6817.T | Sumida Corp | 1.73 | 1.1 | 0.46 |
| 6958.T | CMK Corp | 1.83 | 1.72 | 0.69 |
| 6996.T | Nichicon Corp | 0.44 | 0.99 | 0.73 |
| 6997.T | Nippon Chemi-Con Corp | 3.1 | 1.52 | 0.43 |
| Low | High | |
| Unlevered beta | 0.66 | 0.75 |
| Relevered beta | 1.25 | 1.43 |
| Adjusted relevered beta | 1.17 | 1.29 |
7915.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 7915.T:
cost_of_equity (10.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.17) + 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.