6281.T WACC - Weighted Average Cost of Capital

The WACC of Maeda Seisakusho Co Ltd (6281.T) is 6.1%.

The Cost of Equity of Maeda Seisakusho Co Ltd (6281.T) is 8.60%.

The Cost of Debt of Maeda Seisakusho Co Ltd (6281.T) is 4.25%.

	Range	Selected
Cost of equity	5.90% - 11.30%	8.60%
Tax rate	31.20% - 32.50%	31.85%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.5% - 7.7%	6.1%

WACC

6281.T WACC calculation

Category	Low	High

Long-term bond rate	0.8%	1.2%
Equity market risk premium	5.4%	6.4%
Adjusted beta	0.94	1.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.90%	11.30%

Tax rate	31.20%	32.50%
Debt/Equity ratio	0.76	0.76
Cost of debt	4.00%	4.50%

After-tax WACC	4.5%	7.7%


Selected WACC	6.1%

6281.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 6281.T:

cost_of_equity (8.60%) = risk_free_rate (1.00%) + equity_risk_premium (5.90%) * adjusted_beta (0.94) + 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.