9930.T WACC - Weighted Average Cost of Capital
The WACC of Kitazawa Sangyo Co Ltd (9930.T) is 6.3%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.9% | 7.55% |
| Tax rate | 39.3% - 47.6% | 43.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.3% - 7.3% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.78 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.9% |
| Tax rate | 39.3% | 47.6% |
| Debt/Equity ratio | 0.3 | 0.3 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.3% | 7.3% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9930.T | Kitazawa Sangyo Co Ltd | 0.3 | 0.51 | 0.44 |
| 1514.T | Sumiseki Holdings Inc | 0 | 1.5 | 1.5 |
| 7677.T | Yashima & Co Ltd | 0 | 0.19 | 0.19 |
| 8015.T | Toyota Tsusho Corp | 0.54 | 1.39 | 1.06 |
| 8078.T | Hanwa Co Ltd | 1.51 | 1 | 0.52 |
| 8089.T | Nice Corp | 2.03 | 0.45 | 0.2 |
| 8090.T | Shoko Co Ltd | 1.61 | 1.16 | 0.59 |
| 8104.T | Kuwazawa Holdings Corp | 0.24 | 0.83 | 0.73 |
| 8158.T | Soda Nikka Co Ltd | 0.13 | 0.94 | 0.88 |
| 9845.T | Parker Corp | 0.21 | 0.83 | 0.73 |
| Low | High | |
| Unlevered beta | 0.57 | 0.73 |
| Relevered beta | 0.67 | 0.87 |
| Adjusted relevered beta | 0.78 | 0.91 |
9930.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 9930.T:
cost_of_equity (7.55%) = 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.