6338.T WACC - Weighted Average Cost of Capital
The WACC of Takatori Corp (6338.T) is 6.2%.
| Range | Selected | |
| Cost of equity | 6.4% - 8.8% | 7.6% |
| Tax rate | 28.4% - 29.7% | 29.05% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.3% - 7.1% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.81 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.4% | 8.8% |
| Tax rate | 28.4% | 29.7% |
| Debt/Equity ratio | 0.44 | 0.44 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.3% | 7.1% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6338.T | Takatori Corp | 0.44 | 2 | 1.52 |
| 5950.T | Japan Power Fastening Co Ltd | 0.61 | 0.38 | 0.27 |
| 5964.T | Toyo Knife Co Ltd | 0.52 | 0.66 | 0.48 |
| 6131.T | Hamai Co Ltd | 0.44 | 0.03 | 0.02 |
| 6150.T | Takeda Machinery Co Ltd | 0.47 | 0.68 | 0.51 |
| 6166.T | Nakamura Choukou Co Ltd | 0.88 | 1.29 | 0.79 |
| 6396.T | Unozawa-gumi Iron Works Ltd | 0.7 | 0.85 | 0.57 |
| 6433.T | Hephaist Co Ltd | 0.6 | 0.97 | 0.68 |
| 6488.T | Yoshitake Inc | 0.11 | 0.68 | 0.63 |
| 6492.T | Okano Valve Mfg. Co Ltd | 0.09 | 1.08 | 1.01 |
| Low | High | |
| Unlevered beta | 0.55 | 0.65 |
| Relevered beta | 0.72 | 0.85 |
| Adjusted relevered beta | 0.81 | 0.9 |
6338.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 6338.T:
cost_of_equity (7.60%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.81) + 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.