6376.T WACC - Weighted Average Cost of Capital
The WACC of Nikkiso Co Ltd (6376.T) is 6.3%.
| Range | Selected | |
| Cost of equity | 8.8% - 12.2% | 10.5% |
| Tax rate | 24.0% - 38.4% | 31.2% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.6% - 7.0% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.2 | 1.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.8% | 12.2% |
| Tax rate | 24.0% | 38.4% |
| Debt/Equity ratio | 1.2 | 1.2 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.6% | 7.0% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6376.T | Nikkiso Co Ltd | 1.2 | 1.18 | 0.63 |
| 5331.T | Noritake Co Ltd | 0.06 | 1.08 | 1.04 |
| 5715.T | Furukawa Co Ltd | 0.74 | 1.04 | 0.67 |
| 5851.T | Ryobi Ltd | 0.86 | 1.09 | 0.67 |
| 6103.T | Okuma Corp | 0.04 | 1.39 | 1.35 |
| 6104.T | Shibaura Machine Co Ltd | 0.12 | 0.96 | 0.88 |
| 6135.T | Makino Milling Machine Co Ltd | 0.2 | 0.96 | 0.83 |
| 6406.T | Fujitec Co Ltd | 0.01 | 0.57 | 0.57 |
| 6474.T | Nachi-Fujikoshi Corp | 1.23 | 0.9 | 0.47 |
| 6498.T | Kitz Corp | 0.35 | 1.02 | 0.81 |
| Low | High | |
| Unlevered beta | 0.67 | 0.82 |
| Relevered beta | 1.3 | 1.55 |
| Adjusted relevered beta | 1.2 | 1.37 |
6376.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 6376.T:
cost_of_equity (10.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.2) + 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.