6798.T
SMK Corp
Price:  
2,156.00 
JPY
Volume:  
9,100.00
Japan | Electronic Equipment, Instruments & Components
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6798.T WACC - Weighted Average Cost of Capital

The WACC of SMK Corp (6798.T) is 6.0%.

The Cost of Equity of SMK Corp (6798.T) is 8.80%.
The Cost of Debt of SMK Corp (6798.T) is 4.50%.

Range Selected
Cost of equity 7.30% - 10.30% 8.80%
Tax rate 27.70% - 30.60% 29.15%
Cost of debt 4.00% - 5.00% 4.50%
WACC 5.1% - 6.9% 6.0%
WACC

6798.T WACC calculation

Category Low High
Long-term bond rate 1.4% 1.9%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.96 1.11
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 10.30%
Tax rate 27.70% 30.60%
Debt/Equity ratio 0.99 0.99
Cost of debt 4.00% 5.00%
After-tax WACC 5.1% 6.9%
Selected WACC 6.0%

6798.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 6798.T:

cost_of_equity (8.80%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.96) + 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.