6668.T WACC - Weighted Average Cost of Capital
The WACC of Adtec Plasma Technology Co Ltd (6668.T) is 5.4%.
| Range | Selected | |
| Cost of equity | 6.7% - 9.3% | 8% |
| Tax rate | 25.9% - 27.2% | 26.55% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.7% - 6.1% | 5.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.87 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.7% | 9.3% |
| Tax rate | 25.9% | 27.2% |
| Debt/Equity ratio | 1.17 | 1.17 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.7% | 6.1% |
| Selected WACC | 5.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6668.T | Adtec Plasma Technology Co Ltd | 1.17 | 1.08 | 0.58 |
| 6384.T | Showa Shinku Co Ltd | 0.07 | 0.44 | 0.42 |
| 6664.T | OptoElectronics Co Ltd | 3.63 | 0.91 | 0.25 |
| 6709.T | Meisei Electric Co Ltd | 0.01 | 1.02 | 1.02 |
| 6777.T | Santec Corp | 0.04 | 1.63 | 1.59 |
| 6867.T | Leader Electronics Corp | 0.12 | 0.48 | 0.45 |
| 6870.T | Fenwal Controls of Japan Ltd | 0.13 | 0.05 | 0.04 |
| 7314.T | Odawara Auto-Machine Mfg Co Ltd | 1.08 | 0.07 | 0.04 |
| 7713.T | Sigma Koki Co Ltd | 0.05 | 0.63 | 0.6 |
| 7719.T | Tokyo Koki Co Ltd | 0.51 | 0.64 | 0.47 |
| Low | High | |
| Unlevered beta | 0.44 | 0.51 |
| Relevered beta | 0.81 | 0.96 |
| Adjusted relevered beta | 0.87 | 0.97 |
6668.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 6668.T:
cost_of_equity (8.00%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.87) + 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.