8075.T WACC - Weighted Average Cost of Capital
The WACC of Shinsho Corp (8075.T) is 6.1%.
| Range | Selected | |
| Cost of equity | 8.2% - 12.1% | 10.15% |
| Tax rate | 31.8% - 37.2% | 34.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.2% - 7.1% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.11 | 1.36 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.2% | 12.1% |
| Tax rate | 31.8% | 37.2% |
| Debt/Equity ratio | 1.19 | 1.19 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.2% | 7.1% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8075.T | Shinsho Corp | 1.19 | 1.09 | 0.61 |
| 8012.T | Nagase & Co Ltd | 0.56 | 0.86 | 0.63 |
| 8014.T | Chori Co Ltd | 0.01 | 0.99 | 0.98 |
| 8020.T | Kanematsu Corp | 0.91 | 1.1 | 0.68 |
| 8032.T | Japan Pulp & Paper Co Ltd | 1.18 | 0.7 | 0.39 |
| 8059.T | Daiichi Jitsugyo Co Ltd | 0.03 | 1.1 | 1.08 |
| 8074.T | Yuasa Trading Co Ltd | 0.07 | 0.88 | 0.84 |
| 8098.T | Inabata & Co Ltd | 0.43 | 0.81 | 0.63 |
| 9960.T | Totech Corp | 0.09 | 0.94 | 0.89 |
| 9991.T | Gecoss Corp | 0.02 | 0.9 | 0.89 |
| Low | High | |
| Unlevered beta | 0.66 | 0.86 |
| Relevered beta | 1.16 | 1.54 |
| Adjusted relevered beta | 1.11 | 1.36 |
8075.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 8075.T:
cost_of_equity (10.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.11) + 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.