6867.T WACC - Weighted Average Cost of Capital
The WACC of Leader Electronics Corp (6867.T) is 5.9%.
| Range | Selected | |
| Cost of equity | 5.0% - 7.2% | 6.1% |
| Tax rate | 20.0% - 27.6% | 23.8% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.9% - 7.0% | 5.9% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.51 | 0.61 |
| Additional risk adjustments | 0.5% | 1.0% |
| Cost of equity | 5.0% | 7.2% |
| Tax rate | 20.0% | 27.6% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.9% | 7.0% |
| Selected WACC | 5.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6867.T | Leader Electronics Corp | 0.11 | 0.46 | 0.42 |
| 6428.T | Oizumi Corp | 2.19 | 0.69 | 0.26 |
| 6663.T | Taiyo Industrial Co Ltd | 0.57 | 0.5 | 0.35 |
| 6664.T | OptoElectronics Co Ltd | 3.72 | 0.88 | 0.23 |
| 6775.T | TB Group Inc | 0.33 | 1.21 | 0.97 |
| 6862.T | Minato Holdings Inc | 1.54 | 0.51 | 0.24 |
| 6870.T | Fenwal Controls of Japan Ltd | 0.13 | 0.04 | 0.04 |
| 7314.T | Odawara Auto-Machine Mfg Co Ltd | 1.13 | 0.09 | 0.05 |
| 7711.T | Sukegawa Electric Co Ltd | 0.09 | 1.74 | 1.62 |
| 7859.T | Almedio Inc | 0.12 | 1.13 | 1.04 |
| Low | High | |
| Unlevered beta | 0.25 | 0.38 |
| Relevered beta | 0.27 | 0.42 |
| Adjusted relevered beta | 0.51 | 0.61 |
6867.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 6867.T:
cost_of_equity (6.10%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.51) + risk_adjustments (0.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.