7965.T WACC - Weighted Average Cost of Capital
The WACC of Zojirushi Corp (7965.T) is 5.7%.
| Range | Selected | |
| Cost of equity | 4.9% - 6.7% | 5.8% |
| Tax rate | 29.6% - 31.3% | 30.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.8% - 6.6% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.57 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.9% | 6.7% |
| Tax rate | 29.6% | 31.3% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.8% | 6.6% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7965.T | Zojirushi Corp | 0.03 | 0.72 | 0.7 |
| 5962.T | Asaka Industrial Co Ltd | 0.6 | 0.23 | 0.16 |
| 5966.T | Kyoto Tool Co Ltd | 0.14 | 0.46 | 0.42 |
| 5967.T | Tone Co Ltd | 0.18 | 0.39 | 0.35 |
| 5969.T | Lobtex Co Ltd | 1.36 | -0.07 | -0.04 |
| 6445.T | Janome Sewing Machine Co Ltd | 0.2 | 0.43 | 0.38 |
| 6612.T | Balmuda Inc | 0.05 | 0.36 | 0.35 |
| 6755.T | Fujitsu General Ltd | 0.05 | 0.51 | 0.49 |
| 6897.T | Twinbird Corp | 0.46 | 0.4 | 0.31 |
| 7955.T | Cleanup Corp | 0.29 | 0.57 | 0.48 |
| Low | High | |
| Unlevered beta | 0.35 | 0.4 |
| Relevered beta | 0.36 | 0.4 |
| Adjusted relevered beta | 0.57 | 0.6 |
7965.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 7965.T:
cost_of_equity (5.80%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.57) + 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.