6330.T
Toyo Engineering Corp
Price:  
1,029 
JPY
Volume:  
2,108,200
Japan | Construction & Engineering

6330.T WACC - Weighted Average Cost of Capital

The WACC of Toyo Engineering Corp (6330.T) is 6.1%.

The Cost of Equity of Toyo Engineering Corp (6330.T) is 9.9%.
The Cost of Debt of Toyo Engineering Corp (6330.T) is 4.5%.

RangeSelected
Cost of equity8.5% - 11.3%9.9%
Tax rate27.7% - 30.6%29.15%
Cost of debt4.0% - 5.0%4.5%
WACC5.4% - 6.9%6.1%
WACC

6330.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta1.151.25
Additional risk adjustments0.0%0.5%
Cost of equity8.5%11.3%
Tax rate27.7%30.6%
Debt/Equity ratio
1.261.26
Cost of debt4.0%5.0%
After-tax WACC5.4%6.9%
Selected WACC6.1%

6330.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 6330.T:

cost_of_equity (9.90%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.15) + 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.