6346.T WACC - Weighted Average Cost of Capital
The WACC of Kikukawa Enterprise Inc (6346.T) is 6.2%.
| Range | Selected | |
| Cost of equity | 7.4% - 11.3% | 9.35% |
| Tax rate | 27.8% - 29.0% | 28.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.1% - 7.2% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.97 | 1.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 11.3% |
| Tax rate | 27.8% | 29.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.1% | 7.2% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6346.T | Kikukawa Enterprise Inc | 1.06 | 0.13 | 0.07 |
| 6131.T | Hamai Co Ltd | 0.32 | 0.03 | 0.02 |
| 6166.T | Nakamura Choukou Co Ltd | 0.92 | 1.29 | 0.78 |
| 6307.T | Sansei Co Ltd | 0.1 | 0.45 | 0.42 |
| 6327.T | Kitagawa Seiki Co Ltd | 0.28 | 0.41 | 0.34 |
| 6338.T | Takatori Corp | 0.44 | 2 | 1.52 |
| 6356.T | Nippon Gear Co Ltd | 0.02 | 1 | 0.99 |
| 6391.T | Kaji Technology Corp | 0.25 | 1.02 | 0.86 |
| 6396.T | Unozawa-gumi Iron Works Ltd | 0.7 | 0.85 | 0.57 |
| 6492.T | Okano Valve Mfg. Co Ltd | 0.1 | 1.08 | 1.01 |
| 6495.T | Miyairi Valve MFG Co Ltd | 0.49 | 0.71 | 0.52 |
| Low | High | |
| Unlevered beta | 0.52 | 0.78 |
| Relevered beta | 0.96 | 1.36 |
| Adjusted relevered beta | 0.97 | 1.24 |
6346.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 6346.T:
cost_of_equity (9.35%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.97) + 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.