9326.T
Kantsu Co Ltd
Price:  
355 
JPY
Volume:  
374,400
Japan | Air Freight & Logistics

9326.T WACC - Weighted Average Cost of Capital

The WACC of Kantsu Co Ltd (9326.T) is 4.2%.

The Cost of Equity of Kantsu Co Ltd (9326.T) is 6.4%.
The Cost of Debt of Kantsu Co Ltd (9326.T) is 4.25%.

RangeSelected
Cost of equity4.7% - 8.1%6.4%
Tax rate31.6% - 32.3%31.95%
Cost of debt4.0% - 4.5%4.25%
WACC3.5% - 5.0%4.2%
WACC

9326.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.540.8
Additional risk adjustments0.0%0.5%
Cost of equity4.7%8.1%
Tax rate31.6%32.3%
Debt/Equity ratio
1.611.61
Cost of debt4.0%4.5%
After-tax WACC3.5%5.0%
Selected WACC4.2%

9326.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 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.