6517.T
Denyo Co Ltd
Price:  
2,849 
JPY
Volume:  
13,200
Japan | Electrical Equipment

6517.T WACC - Weighted Average Cost of Capital

The WACC of Denyo Co Ltd (6517.T) is 7.6%.

The Cost of Equity of Denyo Co Ltd (6517.T) is 7.85%.
The Cost of Debt of Denyo Co Ltd (6517.T) is 4.25%.

RangeSelected
Cost of equity6.6% - 9.1%7.85%
Tax rate29.2% - 29.8%29.5%
Cost of debt4.0% - 4.5%4.25%
WACC6.4% - 8.7%7.6%
WACC

6517.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.850.95
Additional risk adjustments0.0%0.5%
Cost of equity6.6%9.1%
Tax rate29.2%29.8%
Debt/Equity ratio
0.070.07
Cost of debt4.0%4.5%
After-tax WACC6.4%8.7%
Selected WACC7.6%

6517.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 6517.T:

cost_of_equity (7.85%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.85) + 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.