6277.T WACC - Weighted Average Cost of Capital
The WACC of Hosokawa Micron Corp (6277.T) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.2% - 8.8% | 7.5% |
| Tax rate | 29.3% - 30.3% | 29.8% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.1% - 8.6% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.78 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 8.8% |
| Tax rate | 29.3% | 30.3% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.1% | 8.6% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6277.T | Hosokawa Micron Corp | 0.03 | 1.35 | 1.32 |
| 5933.T | Alinco Inc | 1.23 | 0.76 | 0.41 |
| 5982.T | Maruzen Co Ltd | 0 | 0.45 | 0.45 |
| 6101.T | Tsugami Corp | 0.13 | 1.06 | 0.97 |
| 6143.T | Sodick Co Ltd | 0.77 | 0.95 | 0.62 |
| 6282.T | Oiles Corp | 0.02 | 0.81 | 0.8 |
| 6351.T | Tsurumi Manufacturing Co Ltd | 0.17 | 1.2 | 1.07 |
| 6464.T | Tsubaki Nakashima Co Ltd | 5.92 | 1.31 | 0.26 |
| 6480.T | Nippon Thompson Co Ltd | 0.91 | 1.11 | 0.68 |
| 7718.T | Star Micronics Co Ltd | 0.06 | 0.91 | 0.88 |
| Low | High | |
| Unlevered beta | 0.65 | 0.83 |
| Relevered beta | 0.67 | 0.85 |
| Adjusted relevered beta | 0.78 | 0.9 |
6277.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 6277.T:
cost_of_equity (7.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.78) + 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.