6186.T WACC - Weighted Average Cost of Capital

The WACC of Ichikura Co Ltd (6186.T) is 4.2%.

The Cost of Equity of Ichikura Co Ltd (6186.T) is 5.35%.

The Cost of Debt of Ichikura Co Ltd (6186.T) is 5.50%.

	Range	Selected
Cost of equity	4.30% - 6.40%	5.35%
Tax rate	22.20% - 36.50%	29.35%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.4% - 5.0%	4.2%

WACC

6186.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.47	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.30%	6.40%

Tax rate	22.20%	36.50%
Debt/Equity ratio	2.68	2.68
Cost of debt	4.00%	7.00%

After-tax WACC	3.4%	5.0%


Selected WACC	4.2%

6186.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 6186.T:

cost_of_equity (5.35%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.47) + 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.