6440.T WACC - Weighted Average Cost of Capital

The WACC of Juki Corp (6440.T) is 10.5%.

The Cost of Equity of Juki Corp (6440.T) is 28.40%.

The Cost of Debt of Juki Corp (6440.T) is 11.20%.

	Range	Selected
Cost of equity	22.50% - 34.30%	28.40%
Tax rate	27.70% - 30.60%	29.15%
Cost of debt	4.00% - 18.40%	11.20%
WACC	5.4% - 15.5%	10.5%

WACC

6440.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	3.45	4.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	22.50%	34.30%

Tax rate	27.70%	30.60%
Debt/Equity ratio	6.79	6.79
Cost of debt	4.00%	18.40%

After-tax WACC	5.4%	15.5%


Selected WACC	10.5%

6440.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 6440.T:

cost_of_equity (28.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (3.45) + 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.