6469.T WACC - Weighted Average Cost of Capital

The WACC of Hoden Seimitsu Kako Kenkyusho Co Ltd (6469.T) is 6.1%.

The Cost of Equity of Hoden Seimitsu Kako Kenkyusho Co Ltd (6469.T) is 6.95%.

The Cost of Debt of Hoden Seimitsu Kako Kenkyusho Co Ltd (6469.T) is 4.25%.

	Range	Selected
Cost of equity	4.70% - 9.20%	6.95%
Tax rate	10.70% - 15.80%	13.25%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.4% - 7.9%	6.1%

WACC

6469.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.46	0.88

Additional risk adjustments	0.5%	1.0%
Cost of equity	4.70%	9.20%

Tax rate	10.70%	15.80%
Debt/Equity ratio	0.32	0.32
Cost of debt	4.00%	4.50%

After-tax WACC	4.4%	7.9%


Selected WACC	6.1%

6469.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 6469.T:

cost_of_equity (6.95%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.46) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.