6464.T WACC - Weighted Average Cost of Capital

The WACC of Tsubaki Nakashima Co Ltd (6464.T) is 10.8%.

The Cost of Equity of Tsubaki Nakashima Co Ltd (6464.T) is 26.70%.

The Cost of Debt of Tsubaki Nakashima Co Ltd (6464.T) is 11.20%.

	Range	Selected
Cost of equity	23.30% - 30.10%	26.70%
Tax rate	28.30% - 30.20%	29.25%
Cost of debt	4.00% - 18.40%	11.20%
WACC	6.1% - 15.5%	10.8%

WACC

6464.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	3.57	3.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	23.30%	30.10%

Tax rate	28.30%	30.20%
Debt/Equity ratio	5.42	5.42
Cost of debt	4.00%	18.40%

After-tax WACC	6.1%	15.5%


Selected WACC	10.8%

6464.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 6464.T:

cost_of_equity (26.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (3.57) + 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.