6858.T WACC - Weighted Average Cost of Capital
The WACC of Ono Sokki Co Ltd (6858.T) is 7.7%.
| Range | Selected | |
| Cost of equity | 7.1% - 10.1% | 8.6% |
| Tax rate | 19.9% - 33.6% | 26.75% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.4% - 8.9% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.93 | 1.08 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.1% | 10.1% |
| Tax rate | 19.9% | 33.6% |
| Debt/Equity ratio | 0.2 | 0.2 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.4% | 8.9% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6858.T | Ono Sokki Co Ltd | 0.2 | 1.05 | 0.91 |
| 6384.T | Showa Shinku Co Ltd | 0.07 | 0.44 | 0.42 |
| 6428.T | Oizumi Corp | 2.22 | 0.71 | 0.27 |
| 6775.T | TB Group Inc | 0.3 | 1.25 | 1.02 |
| 6853.T | Kyowa Electronic Instruments Co Ltd | 0.06 | 0.6 | 0.57 |
| 6862.T | Minato Holdings Inc | 1.52 | 0.51 | 0.24 |
| 6946.T | Nippon Avionics Co Ltd | 0.07 | 1.91 | 1.82 |
| 7711.T | Sukegawa Electric Co Ltd | 0.09 | 1.78 | 1.68 |
| 7727.T | Oval Corp | 0.14 | 1.04 | 0.95 |
| 7859.T | Almedio Inc | 0.12 | 1.13 | 1.04 |
| Low | High | |
| Unlevered beta | 0.78 | 0.98 |
| Relevered beta | 0.9 | 1.12 |
| Adjusted relevered beta | 0.93 | 1.08 |
6858.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 6858.T:
cost_of_equity (8.60%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.93) + 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.