6103.T WACC - Weighted Average Cost of Capital
The WACC of Okuma Corp (6103.T) is 7.1%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.3% | 7.2% |
| Tax rate | 26.6% - 30.4% | 28.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.0% - 8.2% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.76 | 0.83 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.3% |
| Tax rate | 26.6% | 30.4% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.0% | 8.2% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6103.T | Okuma Corp | 0.04 | 1.41 | 1.36 |
| 5631.T | Japan Steel Works Ltd | 0.1 | 1.53 | 1.42 |
| 5715.T | Furukawa Co Ltd | 0.76 | 1.07 | 0.69 |
| 5851.T | Ryobi Ltd | 0.92 | 1.06 | 0.64 |
| 6135.T | Makino Milling Machine Co Ltd | 0.24 | 0.93 | 0.8 |
| 6371.T | Tsubakimoto Chain Co | 0.16 | 0.96 | 0.86 |
| 6376.T | Nikkiso Co Ltd | 1.26 | 1.16 | 0.6 |
| 6406.T | Fujitec Co Ltd | 0.02 | 0.54 | 0.53 |
| 6457.T | Glory Ltd | 0.58 | 0.9 | 0.63 |
| 6474.T | Nachi-Fujikoshi Corp | 1.22 | 0.88 | 0.46 |
| Low | High | |
| Unlevered beta | 0.63 | 0.73 |
| Relevered beta | 0.64 | 0.75 |
| Adjusted relevered beta | 0.76 | 0.83 |
6103.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 6103.T:
cost_of_equity (7.20%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.76) + 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.