5218.T WACC - Weighted Average Cost of Capital
The WACC of Ohara Inc (5218.T) is 7.3%.
| Range | Selected | |
| Cost of equity | 7.0% - 9.4% | 8.2% |
| Tax rate | 27.8% - 36.2% | 32% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.3% - 8.2% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.92 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 9.4% |
| Tax rate | 27.8% | 36.2% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.3% | 8.2% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 5218.T | Ohara Inc | 0.21 | 1.29 | 1.14 |
| 3891.T | Nippon Kodoshi Corp | 0.44 | 1.12 | 0.88 |
| 4237.T | Fujipream Corp | 0.45 | 0.96 | 0.74 |
| 6626.T | Semitec Corp | 0.11 | 1.23 | 1.15 |
| 6763.T | Teikoku Tsushin Kogyo Co Ltd | 0 | 0.81 | 0.8 |
| 6826.T | Honda Tsushin Kogyo Co Ltd | 0.02 | 1.6 | 1.58 |
| 6837.T | Kyosha Co Ltd | 1.49 | 1.03 | 0.53 |
| 6928.T | Enomoto Co Ltd | 0.43 | 0.84 | 0.66 |
| 6957.T | Shibaura Electronics Co Ltd | 0 | 0.83 | 0.83 |
| 6994.T | Shizuki Electric Co Inc | 0.64 | 0.76 | 0.54 |
| Low | High | |
| Unlevered beta | 0.78 | 0.85 |
| Relevered beta | 0.88 | 0.97 |
| Adjusted relevered beta | 0.92 | 0.98 |
5218.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 5218.T:
cost_of_equity (8.20%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.92) + 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.