6332.T
Tsukishima Kikai Co Ltd
Price:  
2,029 
JPY
Volume:  
80,200
Japan | Machinery

6332.T WACC - Weighted Average Cost of Capital

The WACC of Tsukishima Kikai Co Ltd (6332.T) is 7.6%.

The Cost of Equity of Tsukishima Kikai Co Ltd (6332.T) is 8.75%.
The Cost of Debt of Tsukishima Kikai Co Ltd (6332.T) is 4.25%.

RangeSelected
Cost of equity7.5% - 10.0%8.75%
Tax rate28.8% - 35.2%32%
Cost of debt4.0% - 4.5%4.25%
WACC6.6% - 8.6%7.6%
WACC

6332.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.991.06
Additional risk adjustments0.0%0.5%
Cost of equity7.5%10.0%
Tax rate28.8%35.2%
Debt/Equity ratio
0.240.24
Cost of debt4.0%4.5%
After-tax WACC6.6%8.6%
Selected WACC7.6%

6332.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 6332.T:

cost_of_equity (8.75%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.99) + 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.