7997.T WACC - Weighted Average Cost of Capital
The WACC of Kurogane Kosakusho Ltd (7997.T) is 5.4%.
| Range | Selected | |
| Cost of equity | 4.6% - 6.8% | 5.7% |
| Tax rate | 9.6% - 13.1% | 11.35% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.2% - 6.5% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.53 | 0.62 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.6% | 6.8% |
| Tax rate | 9.6% | 13.1% |
| Debt/Equity ratio | 0.63 | 0.63 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.2% | 6.5% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7997.T | Kurogane Kosakusho Ltd | 0.63 | 0.84 | 0.54 |
| 3583.T | AuBEX Corp | 0.38 | 0.74 | 0.55 |
| 5695.T | Powdertech Co Ltd | 0.12 | 0.31 | 0.28 |
| 7863.T | Hiraga Co Ltd | 0.2 | 0.35 | 0.29 |
| 7939.T | Kensoh Co Ltd | 0.67 | 0.19 | 0.12 |
| 7957.T | Fujicopian Co Ltd | 0.95 | 0.17 | 0.09 |
| 7962.T | King Jim Co Ltd | 0.23 | 0.34 | 0.28 |
| 7975.T | Lihit Lab Inc | 0.1 | 0.14 | 0.13 |
| 7980.T | Shigematsu Works Co Ltd | 0.83 | 0.4 | 0.23 |
| 7992.T | Sailor Pen Co Ltd | 0.55 | -0.24 | -0.16 |
| Low | High | |
| Unlevered beta | 0.19 | 0.28 |
| Relevered beta | 0.3 | 0.43 |
| Adjusted relevered beta | 0.53 | 0.62 |
7997.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 7997.T:
cost_of_equity (5.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.53) + 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.