6772.T WACC - Weighted Average Cost of Capital
The WACC of Tokyo Cosmos Electric Co Ltd (6772.T) is 6.3%.
| Range | Selected | |
| Cost of equity | 5.4% - 8.0% | 6.7% |
| Tax rate | 30.4% - 30.9% | 30.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.1% - 7.6% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.65 | 0.79 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 8.0% |
| Tax rate | 30.4% | 30.9% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.1% | 7.6% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6772.T | Tokyo Cosmos Electric Co Ltd | 0.1 | 0.12 | 0.12 |
| 4237.T | Fujipream Corp | 0.45 | 0.96 | 0.73 |
| 6618.T | Ohizumi MFG Co Ltd | 0.42 | 0.88 | 0.68 |
| 6763.T | Teikoku Tsushin Kogyo Co Ltd | 0 | 0.81 | 0.8 |
| 6907.T | Geomatec Co Ltd | 0.27 | 1.27 | 1.07 |
| 6919.T | Kel Corp | 0.04 | 0.58 | 0.56 |
| 6926.T | Okaya Electric Industries Co Ltd | 0.82 | 0.41 | 0.26 |
| 6938.T | Soshin Electric Co Ltd | 0.07 | -0.4 | -0.38 |
| 6977.T | Japan Resistor Mfg. Co Ltd | 4 | 0.35 | 0.09 |
| 7746.T | Okamoto Glass Co Ltd | 1.43 | 1.23 | 0.62 |
| Low | High | |
| Unlevered beta | 0.44 | 0.64 |
| Relevered beta | 0.48 | 0.69 |
| Adjusted relevered beta | 0.65 | 0.79 |
6772.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 6772.T:
cost_of_equity (6.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.65) + 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.