9621.T WACC - Weighted Average Cost of Capital
The WACC of CTI Engineering Co Ltd (9621.T) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.6% - 7.6% | 6.6% |
| Tax rate | 28.4% - 29.2% | 28.8% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.5% - 7.4% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.69 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 7.6% |
| Tax rate | 28.4% | 29.2% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.5% | 7.4% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9621.T | CTI Engineering Co Ltd | 0.05 | 0.68 | 0.66 |
| 1434.T | Jesco Holdings Inc | 0.86 | 0.87 | 0.54 |
| 1446.T | Candeal Co Ltd | 0.25 | 0.35 | 0.3 |
| 1954.T | Nippon Koei Co Ltd | 0.83 | 0.73 | 0.46 |
| 2498.T | Oriental Consultants Holdings Co Ltd | 0.44 | 0.65 | 0.49 |
| 4673.T | Kawasaki Geological Engineering Co Ltd | 0.7 | 0.97 | 0.65 |
| 4748.T | Kozo Keikaku Engineering Inc | 0.07 | 0.22 | 0.21 |
| 6540.T | Semba Corp | 0 | 0.6 | 0.6 |
| 7057.T | New Constructor's Network Co Ltd | 0.05 | 0.59 | 0.57 |
| 9624.T | Chodai Co Ltd | 0.01 | 1.59 | 1.58 |
| Low | High | |
| Unlevered beta | 0.52 | 0.58 |
| Relevered beta | 0.54 | 0.6 |
| Adjusted relevered beta | 0.69 | 0.73 |
9621.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 9621.T:
cost_of_equity (6.60%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.69) + 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.