6616.T WACC - Weighted Average Cost of Capital
The WACC of Torex Semiconductor Ltd (6616.T) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.9% - 12.4% | 9.15% |
| Tax rate | 22.1% - 24.8% | 23.45% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.7% - 9.3% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.74 | 1.4 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 12.4% |
| Tax rate | 22.1% | 24.8% |
| Debt/Equity ratio | 0.76 | 0.76 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.7% | 9.3% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6616.T | Torex Semiconductor Ltd | 0.76 | 1.63 | 1.03 |
| 006200.KS | KEC Holdings Co Ltd | 1.55 | 0.69 | 0.32 |
| 054090.KQ | Samjin LND Co Ltd | 3.52 | 1.2 | 0.32 |
| 095910.KQ | S-Energy Co Ltd | 2.85 | 0.39 | 0.12 |
| 3445.T | RS Technologies Co Ltd | 0.15 | 1.36 | 1.22 |
| 4238.T | Miraial Co Ltd | 0 | 1.14 | 1.14 |
| 6832.T | Aoi Electronics Co Ltd | 0.07 | 1.14 | 1.08 |
| 6941.T | Yamaichi Electronics Co Ltd | 0.11 | 1.08 | 1 |
| 6967.T | Shinko Electric Industries Co Ltd | 0.04 | 0.29 | 0.28 |
| 7836.T | AVIX Inc | 0.11 | 0.46 | 0.42 |
| Low | High | |
| Unlevered beta | 0.38 | 1.01 |
| Relevered beta | 0.61 | 1.6 |
| Adjusted relevered beta | 0.74 | 1.4 |
6616.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 6616.T:
cost_of_equity (9.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.74) + 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.