8928.T WACC - Weighted Average Cost of Capital

The WACC of Anabuki Kosan Inc (8928.T) is 3.5%.

The Cost of Equity of Anabuki Kosan Inc (8928.T) is 6.25%.

The Cost of Debt of Anabuki Kosan Inc (8928.T) is 4.25%.

	Range	Selected
Cost of equity	4.80% - 7.70%	6.25%
Tax rate	39.50% - 40.20%	39.85%
Cost of debt	4.00% - 4.50%	4.25%
WACC	3.0% - 4.0%	3.5%

WACC

8928.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.56	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.80%	7.70%

Tax rate	39.50%	40.20%
Debt/Equity ratio	2.84	2.84
Cost of debt	4.00%	4.50%

After-tax WACC	3.0%	4.0%


Selected WACC	3.5%

8928.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 8928.T:

cost_of_equity (6.25%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.56) + 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.