6457.T WACC - Weighted Average Cost of Capital
The WACC of Glory Ltd (6457.T) is 6.8%.
| Range | Selected | |
| Cost of equity | 7.2% - 9.8% | 8.5% |
| Tax rate | 38.7% - 42.8% | 40.75% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.9% - 7.8% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.95 | 1.05 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.2% | 9.8% |
| Tax rate | 38.7% | 42.8% |
| Debt/Equity ratio | 0.4 | 0.4 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.9% | 7.8% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6457.T | Glory Ltd | 0.4 | 0.93 | 0.76 |
| 5631.T | Japan Steel Works Ltd | 0.07 | 1.51 | 1.45 |
| 5715.T | Furukawa Co Ltd | 0.67 | 1.05 | 0.75 |
| 5851.T | Ryobi Ltd | 0.86 | 1.11 | 0.74 |
| 6103.T | Okuma Corp | 0.04 | 1.36 | 1.33 |
| 6135.T | Makino Milling Machine Co Ltd | 0.2 | 0.97 | 0.87 |
| 6371.T | Tsubakimoto Chain Co | 0.14 | 0.93 | 0.86 |
| 6406.T | Fujitec Co Ltd | 0.01 | 0.59 | 0.59 |
| 6474.T | Nachi-Fujikoshi Corp | 1.2 | 0.93 | 0.54 |
| 6508.T | Meidensha Corp | 0.26 | 1.17 | 1.02 |
| Low | High | |
| Unlevered beta | 0.75 | 0.87 |
| Relevered beta | 0.93 | 1.07 |
| Adjusted relevered beta | 0.95 | 1.05 |
6457.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 6457.T:
cost_of_equity (8.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.95) + 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.