6369.T WACC - Weighted Average Cost of Capital
The WACC of Toyo Kanetsu KK (6369.T) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.7% - 9.6% | 7.65% |
| Tax rate | 29.4% - 33.0% | 31.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.8% - 7.6% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.71 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.7% | 9.6% |
| Tax rate | 29.4% | 33.0% |
| Debt/Equity ratio | 0.44 | 0.44 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.8% | 7.6% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6369.T | Toyo Kanetsu KK | 0.44 | 1.14 | 0.87 |
| 1921.HK | Dalipal Holdings Ltd | 0.3 | 0.15 | 0.12 |
| 1938.HK | Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Ltd | 9.4 | 0.28 | 0.04 |
| 206.HK | CMIC Ocean En Tech Holding Co Ltd | 0.54 | 0.39 | 0.29 |
| 3303.HK | Jutal Offshore Oil Services Ltd | 0.08 | 0.56 | 0.53 |
| 603800.SS | Suzhou Douson Drilling&Production Equipment Co Ltd | 0.17 | 1.54 | 1.37 |
| 6239.T | Nagaoka International Corp | 0.03 | 1.15 | 1.12 |
| 6269.T | Modec Inc | 0 | 1.34 | 1.34 |
| DELEUM.KL | Deleum Bhd | 0.02 | 0.72 | 0.71 |
| KNM.KL | KNM Group Bhd | 13.18 | 1.93 | 0.19 |
| Low | High | |
| Unlevered beta | 0.43 | 0.77 |
| Relevered beta | 0.57 | 1.01 |
| Adjusted relevered beta | 0.71 | 1.01 |
6369.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 6369.T:
cost_of_equity (7.65%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.71) + 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.