6465.T WACC - Weighted Average Cost of Capital

The WACC of Hoshizaki Corp (6465.T) is 9.5%.

The Cost of Equity of Hoshizaki Corp (6465.T) is 9.50%.

The Cost of Debt of Hoshizaki Corp (6465.T) is 13.70%.

	Range	Selected
Cost of equity	7.30% - 11.70%	9.50%
Tax rate	30.20% - 30.90%	30.55%
Cost of debt	4.00% - 23.40%	13.70%
WACC	7.2% - 11.7%	9.5%

WACC

6465.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.96	1.3

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.30%	11.70%

Tax rate	30.20%	30.90%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	23.40%

After-tax WACC	7.2%	11.7%


Selected WACC	9.5%

6465.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 6465.T:

cost_of_equity (9.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.96) + 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.