6894.T
Pulstec Industrial Co Ltd
Price:  
1,755 
JPY
Volume:  
200
Japan | Electronic Equipment, Instruments & Components

6894.T WACC - Weighted Average Cost of Capital

The WACC of Pulstec Industrial Co Ltd (6894.T) is 8.9%.

The Cost of Equity of Pulstec Industrial Co Ltd (6894.T) is 8.95%.
The Cost of Debt of Pulstec Industrial Co Ltd (6894.T) is 4.25%.

RangeSelected
Cost of equity7.5% - 10.4%8.95%
Tax rate13.1% - 20.4%16.75%
Cost of debt4.0% - 4.5%4.25%
WACC7.5% - 10.4%8.9%
WACC

6894.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta11.12
Additional risk adjustments0.0%0.5%
Cost of equity7.5%10.4%
Tax rate13.1%20.4%
Debt/Equity ratio
00
Cost of debt4.0%4.5%
After-tax WACC7.5%10.4%
Selected WACC8.9%

6894.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 6894.T:

cost_of_equity (8.95%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1) + 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.