8919.T WACC - Weighted Average Cost of Capital
The WACC of Katitas Co Ltd (8919.T) is 5.1%.
| Range | Selected | |
| Cost of equity | 4.3% - 6.4% | 5.35% |
| Tax rate | 32.1% - 32.7% | 32.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.2% - 6.0% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.48 | 0.56 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.3% | 6.4% |
| Tax rate | 32.1% | 32.7% |
| Debt/Equity ratio | 0.14 | 0.14 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.2% | 6.0% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8919.T | Katitas Co Ltd | 0.14 | 0.76 | 0.7 |
| 1431.T | Lib Work Co Ltd | 0.27 | 0.65 | 0.55 |
| 2542.TW | Highwealth Construction Corp | 1.68 | 0.62 | 0.29 |
| 3280.T | STrust Co Ltd | 3.55 | 0.52 | 0.15 |
| 3297.T | Toubujyuhan Co Ltd | 0.52 | 0.23 | 0.17 |
| 8871.T | Goldcrest Co Ltd | 0.64 | 0.34 | 0.24 |
| 8897.T | Takara Leben Co Ltd | 4.3 | 0.66 | 0.17 |
| 8923.T | Tosei Corp | 1.32 | 1.06 | 0.56 |
| 8925.T | Ardepro Co Ltd | 13.21 | -1.26 | -0.13 |
| 8946.T | Asian Star Co | 0.1 | 0.37 | 0.34 |
| Low | High | |
| Unlevered beta | 0.21 | 0.31 |
| Relevered beta | 0.22 | 0.34 |
| Adjusted relevered beta | 0.48 | 0.56 |
8919.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 8919.T:
cost_of_equity (5.35%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.48) + 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.