6316.T WACC - Weighted Average Cost of Capital
The WACC of Maruyama MFG Co Inc (6316.T) is 5.1%.
| Range | Selected | |
| Cost of equity | 5.5% - 7.9% | 6.7% |
| Tax rate | 28.0% - 29.4% | 28.7% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 5.9% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.67 | 0.77 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.5% | 7.9% |
| Tax rate | 28.0% | 29.4% |
| Debt/Equity ratio | 0.73 | 0.73 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 5.9% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6316.T | Maruyama MFG Co Inc | 0.73 | 0.72 | 0.47 |
| 5941.T | Nakanishi MFG Co Ltd | 0.12 | 0.2 | 0.18 |
| 6121.T | Takisawa Machine Tool Co Ltd | 0.39 | -0.27 | -0.21 |
| 6165.T | Punch Industry Co Ltd | 0.3 | 0.82 | 0.68 |
| 6218.T | Enshu Ltd | 4.1 | 0.44 | 0.11 |
| 6250.T | Yamabiko Corp | 0.15 | 1.9 | 1.71 |
| 6293.T | Nissei Plastic Industrial Co Ltd | 1.46 | 0.83 | 0.41 |
| 6310.T | Iseki&Co Ltd | 2.6 | 0.83 | 0.29 |
| 6325.T | Takakita Co Ltd | 0.02 | 0.37 | 0.36 |
| 6326.T | Kubota Corp | 1.19 | 1.01 | 0.55 |
| Low | High | |
| Unlevered beta | 0.33 | 0.43 |
| Relevered beta | 0.51 | 0.66 |
| Adjusted relevered beta | 0.67 | 0.77 |
6316.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 6316.T:
cost_of_equity (6.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.67) + 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.