9914.T WACC - Weighted Average Cost of Capital

The WACC of Uematsu Shokai Co Ltd (9914.T) is 5.1%.

The Cost of Equity of Uematsu Shokai Co Ltd (9914.T) is 5.10%.

The Cost of Debt of Uematsu Shokai Co Ltd (9914.T) is 5.60%.

	Range	Selected
Cost of equity	4.30% - 5.90%	5.10%
Tax rate	42.90% - 48.70%	45.80%
Cost of debt	4.00% - 7.20%	5.60%
WACC	4.3% - 5.9%	5.1%

WACC

9914.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.47	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.30%	5.90%

Tax rate	42.90%	48.70%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.00%	7.20%

After-tax WACC	4.3%	5.9%


Selected WACC	5.1%

9914.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 9914.T:

cost_of_equity (5.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.47) + 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.