6164.T WACC - Weighted Average Cost of Capital
The WACC of Taiyo Koki Co Ltd (6164.T) is 5.8%.
| Range | Selected | |
| Cost of equity | 6.8% - 9.4% | 8.1% |
| Tax rate | 30.7% - 31.8% | 31.25% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.1% - 6.4% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.88 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.8% | 9.4% |
| Tax rate | 30.7% | 31.8% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.1% | 6.4% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6164.T | Taiyo Koki Co Ltd | 0.85 | 0.76 | 0.48 |
| 3441.T | Sanno Co Ltd | 0.86 | 0.77 | 0.48 |
| 5199.T | Fuji Latex Co Ltd | 2.26 | 0.28 | 0.11 |
| 5971.T | Kyowakogyosyo Co Ltd | 0 | 0.29 | 0.29 |
| 6158.T | Waida MFG. Co Ltd | 0.08 | 0.52 | 0.49 |
| 6297.T | Koken Boring Machine Co Ltd | 0.8 | 0.82 | 0.53 |
| 6356.T | Nippon Gear Co Ltd | 0.01 | 0.99 | 0.98 |
| 6400.T | Fuji Seiki Co Ltd | 1.48 | 0.53 | 0.26 |
| 6488.T | Yoshitake Inc | 0.11 | 0.69 | 0.64 |
| 6492.T | Okano Valve Mfg. Co Ltd | 0.08 | 1.19 | 1.13 |
| 9264.T | Puequ Co Ltd | 0.74 | 1.03 | 0.68 |
| Low | High | |
| Unlevered beta | 0.48 | 0.53 |
| Relevered beta | 0.82 | 0.97 |
| Adjusted relevered beta | 0.88 | 0.98 |
6164.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 6164.T:
cost_of_equity (8.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.88) + 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.