6428.T WACC - Weighted Average Cost of Capital

The WACC of Oizumi Corp (6428.T) is 5.0%.

The Cost of Equity of Oizumi Corp (6428.T) is 10.80%.

The Cost of Debt of Oizumi Corp (6428.T) is 4.25%.

	Range	Selected
Cost of equity	8.80% - 12.80%	10.80%
Tax rate	35.00% - 37.10%	36.05%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.4% - 5.7%	5.0%

WACC

6428.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.21	1.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.80%	12.80%

Tax rate	35.00%	37.10%
Debt/Equity ratio	2.51	2.51
Cost of debt	4.00%	4.50%

After-tax WACC	4.4%	5.7%


Selected WACC	5.0%

6428.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 6428.T:

cost_of_equity (10.80%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.21) + 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.