8133.T WACC - Weighted Average Cost of Capital
The WACC of Itochu Enex Co Ltd (8133.T) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.9% - 8.3% | 7.1% |
| Tax rate | 29.3% - 30.3% | 29.8% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.3% - 7.2% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.74 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 8.3% |
| Tax rate | 29.3% | 30.3% |
| Debt/Equity ratio | 0.28 | 0.28 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.3% | 7.2% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8133.T | Itochu Enex Co Ltd | 0.28 | 0.62 | 0.52 |
| 2734.T | Sala Corp | 0.88 | 0.81 | 0.5 |
| 5009.T | Fuji Kosan Co Ltd | 0.19 | 0.66 | 0.58 |
| 7486.T | Sanrin Co Ltd | 0.35 | 0.11 | 0.09 |
| 7490.T | Nissin Shoji Co Ltd | 1.22 | 0.13 | 0.07 |
| 8088.T | Iwatani Corp | 0.64 | 1.01 | 0.7 |
| 8097.T | San-Ai Oil Co Ltd | 0.03 | 0.7 | 0.68 |
| 8131.T | Mitsuuroko Group Holdings Co Ltd | 0.22 | 0.97 | 0.84 |
| 8132.T | Sinanen Holdings Co Ltd | 0.07 | 0.24 | 0.23 |
| VEA.AX | Viva Energy Group Ltd | 1.5 | 1.51 | 0.74 |
| Low | High | |
| Unlevered beta | 0.51 | 0.62 |
| Relevered beta | 0.61 | 0.75 |
| Adjusted relevered beta | 0.74 | 0.83 |
8133.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 8133.T:
cost_of_equity (7.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.74) + 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.