9468.T WACC - Weighted Average Cost of Capital
The WACC of Kadokawa Corp (9468.T) is 5.4%.
| Range | Selected | |
| Cost of equity | 4.6% - 6.3% | 5.45% |
| Tax rate | 26.3% - 30.6% | 28.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.5% - 6.2% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.52 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.6% | 6.3% |
| Tax rate | 26.3% | 30.6% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.5% | 6.2% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9468.T | Kadokawa Corp | 0.04 | 0.2 | 0.19 |
| 2139.T | Chuco Co Ltd | 0.42 | 0.33 | 0.25 |
| 2341.T | Arbeit-Times Co Ltd | 0 | 0.42 | 0.42 |
| 2376.T | SCiNEX Corp | 0.65 | 0.4 | 0.27 |
| 3560.T | Hobonichi Co Ltd | 0 | 0.03 | 0.03 |
| 9467.T | AlphaPolis Co Ltd | 0 | 0.87 | 0.87 |
| 9474.T | Zenrin Co Ltd | 0.04 | 0.3 | 0.29 |
| 9475.T | Shobunsha Holdings Inc | 0.11 | 0.35 | 0.33 |
| 9478.T | SE Holdings and Incubations Co Ltd | 0.65 | 0.66 | 0.45 |
| 9479.T | Impress Holdings Inc | 0.09 | 0.34 | 0.32 |
| Low | High | |
| Unlevered beta | 0.28 | 0.32 |
| Relevered beta | 0.28 | 0.33 |
| Adjusted relevered beta | 0.52 | 0.55 |
9468.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 9468.T:
cost_of_equity (5.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.52) + 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.