3059.T WACC - Weighted Average Cost of Capital

The WACC of Hiraki Co Ltd (3059.T) is 7.1%.

The Cost of Equity of Hiraki Co Ltd (3059.T) is 9.65%.

The Cost of Debt of Hiraki Co Ltd (3059.T) is 8.60%.

	Range	Selected
Cost of equity	6.60% - 12.70%	9.65%
Tax rate	33.70% - 36.90%	35.30%
Cost of debt	4.00% - 13.20%	8.60%
WACC	4.2% - 10.1%	7.1%

WACC

3059.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.84	1.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.60%	12.70%

Tax rate	33.70%	36.90%
Debt/Equity ratio	1.54	1.54
Cost of debt	4.00%	13.20%

After-tax WACC	4.2%	10.1%


Selected WACC	7.1%

3059.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 3059.T:

cost_of_equity (9.65%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.84) + 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.