The WACC of Kantsu Co Ltd (9326.T) is 4.2%.
Range | Selected | |
Cost of equity | 4.7% - 8.1% | 6.4% |
Tax rate | 31.6% - 32.3% | 31.95% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 3.5% - 5.0% | 4.2% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.54 | 0.8 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 4.7% | 8.1% |
Tax rate | 31.6% | 32.3% |
Debt/Equity ratio | 1.61 | 1.61 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 3.5% | 5.0% |
Selected WACC | 4.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
9326.T | Kantsu Co Ltd | 1.61 | 0.37 | 0.17 |
8035.HK | Janco Holdings Ltd | 1.44 | -0.22 | -0.11 |
9143.T | SG Holdings Co Ltd | 0.09 | 0.13 | 0.12 |
9145.T | Being Holdings Co Ltd | 0.37 | 0.51 | 0.4 |
9302.T | Mitsui Soko Holdings Co Ltd | 0.32 | 0.12 | 0.1 |
9304.T | Shibusawa Warehouse Co Ltd | 0.54 | 0.67 | 0.49 |
9319.T | Chuo Warehouse Co Ltd | 0.24 | 0.49 | 0.42 |
9324.T | Yasuda Logistics Corp | 1.35 | 0.56 | 0.29 |
9381.T | AIT Corp | 0.01 | 0.79 | 0.78 |
ARSHIYA.NS | Arshiya Ltd | 28.01 | 1.21 | 0.06 |
Low | High | |
Unlevered beta | 0.15 | 0.34 |
Relevered beta | 0.31 | 0.7 |
Adjusted relevered beta | 0.54 | 0.8 |
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 9326.T:
cost_of_equity (6.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.54) + 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.