9502.T WACC - Weighted Average Cost of Capital
The WACC of Chubu Electric Power Co Inc (9502.T) is 4.8%.
| Range | Selected | |
| Cost of equity | 4.8% - 7.0% | 5.9% |
| Tax rate | 20.3% - 21.8% | 21.05% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 3.7% - 5.9% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.56 | 0.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.8% | 7.0% |
| Tax rate | 20.3% | 21.8% |
| Debt/Equity ratio | 2.31 | 2.31 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 3.7% | 5.9% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9502.T | Chubu Electric Power Co Inc | 2.31 | 0.61 | 0.22 |
| 7692.T | Earth Infinity Co Ltd | 0.07 | 1.44 | 1.36 |
| 9503.T | Kansai Electric Power Co Inc | 2.46 | 0.86 | 0.29 |
| 9504.T | Chugoku Electric Power Co Inc | 11.5 | 0.67 | 0.07 |
| 9505.T | Hokuriku Electric Power Co | 7.82 | 0.83 | 0.12 |
| 9506.T | Tohoku Electric Power Co Inc | 6.64 | 0.84 | 0.13 |
| 9507.T | Shikoku Electric Power Co Inc | 3.73 | 0.85 | 0.22 |
| 9508.T | Kyushu Electric Power Co Inc | 6.36 | 0.74 | 0.12 |
| 9509.T | Hokkaido Electric Power Co Inc | 9.35 | 0.99 | 0.12 |
| 9511.T | Okinawa Electric Power Co Inc | 6.12 | 0.48 | 0.08 |
| Low | High | |
| Unlevered beta | 0.12 | 0.17 |
| Relevered beta | 0.34 | 0.46 |
| Adjusted relevered beta | 0.56 | 0.64 |
9502.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 9502.T:
cost_of_equity (5.90%) = 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.