7927.T WACC - Weighted Average Cost of Capital
The WACC of Muto Seiko Co (7927.T) is 7.3%.
| Range | Selected | |
| Cost of equity | 8.0% - 11.6% | 9.8% |
| Tax rate | 26.3% - 29.9% | 28.1% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.1% - 8.5% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.07 | 1.29 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.0% | 11.6% |
| Tax rate | 26.3% | 29.9% |
| Debt/Equity ratio | 0.57 | 0.57 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.1% | 8.5% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7927.T | Muto Seiko Co | 0.57 | 0.83 | 0.59 |
| 4107.T | Ise Chemicals Corp | 0 | 1.02 | 1.02 |
| 4222.T | Kodama Chemical Industry Co Ltd | 0.46 | 1.59 | 1.2 |
| 4251.T | Keiwa Inc | 0.16 | 1.15 | 1.03 |
| 4615.T | Shinto Paint Co Ltd | 1.14 | 0.28 | 0.15 |
| 6619.T | W-Scope Corp | 0.62 | 1.61 | 1.12 |
| 6776.T | Tensho Electric Industries Co Ltd | 1.79 | 0.6 | 0.26 |
| 7886.T | Yamato Industry Co Ltd | 2.43 | 0.83 | 0.3 |
| 7908.T | Kimoto Co Ltd | 0 | 1.08 | 1.07 |
| 8152.T | Somar Corp | 0.47 | 1.23 | 0.92 |
| Low | High | |
| Unlevered beta | 0.79 | 1.02 |
| Relevered beta | 1.1 | 1.43 |
| Adjusted relevered beta | 1.07 | 1.29 |
7927.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 7927.T:
cost_of_equity (9.80%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.07) + 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.