9767.T WACC - Weighted Average Cost of Capital
The WACC of Nikken Kogaku Co Ltd (9767.T) is 6.9%.
| Range | Selected | |
| Cost of equity | 6.2% - 9.1% | 7.65% |
| Tax rate | 23.7% - 25.7% | 24.7% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.7% - 8.1% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.78 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 9.1% |
| Tax rate | 23.7% | 25.7% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.7% | 8.1% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9767.T | Nikken Kogaku Co Ltd | 0.2 | 0.08 | 0.07 |
| 4026.T | Konoshima Chemical Co Ltd | 0.87 | 1.15 | 0.69 |
| 502175.BO | Saurashtra Cement Ltd | 0.05 | 1.26 | 1.21 |
| 5268.T | Asahi Concrete Works Co Ltd | 0.08 | 0.45 | 0.42 |
| 5271.T | Toyo Asano Foundation Co Ltd | 2.79 | 0.5 | 0.16 |
| 5273.T | Mitani Sekisan Co Ltd | 0.01 | 1.08 | 1.07 |
| 5285.T | Yamax Corp | 0.13 | 1.14 | 1.04 |
| 5352.T | Krosaki Harima Corp | 0.4 | 1.14 | 0.87 |
| 5355.T | Nippon Crucible Co Ltd | 0.47 | 0.12 | 0.09 |
| THG.VN | Tien Giang Investment and Construction JSC | 0.35 | 0.92 | 0.73 |
| Low | High | |
| Unlevered beta | 0.58 | 0.79 |
| Relevered beta | 0.67 | 0.91 |
| Adjusted relevered beta | 0.78 | 0.94 |
9767.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 9767.T:
cost_of_equity (7.65%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.78) + 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.