6628.T WACC - Weighted Average Cost of Capital
The WACC of Onkyo Home Entertainment Corp (6628.T) is 6.1%.
| Range | Selected | |
| Cost of equity | 5.1% - 8.7% | 6.9% |
| Tax rate | 1.3% - 16.9% | 9.1% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.7% - 7.6% | 6.1% |
| Category | Low | High |
| Long-term bond rate | 0.8% | 1.2% |
| Equity market risk premium | 5.4% | 6.4% |
| Adjusted beta | 0.8 | 1.07 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.1% | 8.7% |
| Tax rate | 1.3% | 16.9% |
| Debt/Equity ratio | 0.58 | 0.58 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.7% | 7.6% |
| Selected WACC | 6.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6628.T | Onkyo Home Entertainment Corp | 0.58 | 2.11 | 1.34 |
| 328.HK | Alco Holdings Ltd | 2.53 | 0.84 | 0.24 |
| 6201.TW | Ya Horng Electronic Co Ltd | 0.01 | 0.17 | 0.17 |
| 6632.T | JVCkenwood Corp | 0.26 | 0.84 | 0.67 |
| 6794.T | Foster Electric Co Ltd | 0.24 | 1.68 | 1.35 |
| 6809.T | TOA Corp (Hyogo) | 0.09 | 0.78 | 0.71 |
| 6839.T | Funai Electric Co Ltd | 0.01 | 1.87 | 1.85 |
| 6952.T | Casio Computer Co Ltd | 0.19 | 0.66 | 0.55 |
| 7740.T | Tamron Co Ltd | 0.01 | 0.98 | 0.97 |
| 912.HK | Suga International Holdings Ltd | 0.15 | 0.41 | 0.36 |
| 927.HK | Fujikon Industrial Holdings Ltd | 0.02 | 0.34 | 0.33 |
| Low | High | |
| Unlevered beta | 0.55 | 0.71 |
| Relevered beta | 0.7 | 1.1 |
| Adjusted relevered beta | 0.8 | 1.07 |
6628.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 6628.T:
cost_of_equity (6.90%) = risk_free_rate (1.00%) + equity_risk_premium (5.90%) * adjusted_beta (0.8) + 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.