8168.T WACC - Weighted Average Cost of Capital
The WACC of Keiyo Co Ltd (8168.T) is 4.9%.
| Range | Selected | |
| Cost of equity | 4.3% - 6.3% | 5.3% |
| Tax rate | 28.4% - 32.5% | 30.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.0% - 5.8% | 4.9% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.39 | 0.48 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 4.3% | 6.3% |
| Tax rate | 28.4% | 32.5% |
| Debt/Equity ratio | 0.19 | 0.19 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.0% | 5.8% |
| Selected WACC | 4.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8168.T | Keiyo Co Ltd | 0.19 | -0.68 | -0.6 |
| 3191.T | Joyful Honda Co Ltd | 0.07 | 0.23 | 0.22 |
| 3546.T | Alleanza Holdings Co Ltd | 0.88 | 0.4 | 0.25 |
| 7450.T | Sunday Co Ltd | 1.19 | 0.16 | 0.09 |
| 7636.T | Handsman Co Ltd | 0.34 | 0.3 | 0.24 |
| 8208.T | Encho Co Ltd | 2.35 | 0.12 | 0.04 |
| 9835.T | Juntendo Co Ltd | 3.33 | 0.18 | 0.05 |
| 9842.T | Arcland Sakamoto Co Ltd | 1.1 | 0.45 | 0.25 |
| 9903.T | Kanseki Co Ltd | 1.72 | 0.08 | 0.04 |
| 9976.T | Sekichu Co Ltd | 0.81 | 0.29 | 0.18 |
| Low | High | |
| Unlevered beta | 0.08 | 0.2 |
| Relevered beta | 0.09 | 0.22 |
| Adjusted relevered beta | 0.39 | 0.48 |
8168.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 8168.T:
cost_of_equity (5.30%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.39) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.