The WACC of Pulstec Industrial Co Ltd (6894.T) is 8.9%.
Range | Selected | |
Cost of equity | 7.5% - 10.4% | 8.95% |
Tax rate | 13.1% - 20.4% | 16.75% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 7.5% - 10.4% | 8.9% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 1 | 1.12 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.5% | 10.4% |
Tax rate | 13.1% | 20.4% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 7.5% | 10.4% |
Selected WACC | 8.9% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
6894.T | Pulstec Industrial Co Ltd | 0 | 0.37 | 0.37 |
6232.T | Autonomous Control Systems Laboratory Ltd | 0.15 | 1.57 | 1.4 |
6663.T | Taiyo Industrial Co Ltd | 0.57 | 0.5 | 0.34 |
6721.T | Wintest Corp | 0.05 | 1.06 | 1.02 |
6775.T | TB Group Inc | 0.33 | 1.21 | 0.95 |
6777.T | Santec Corp | 0.04 | 1.62 | 1.57 |
6946.T | Nippon Avionics Co Ltd | 0.07 | 1.92 | 1.81 |
7709.T | Kubotek Corp | 0.06 | 0.36 | 0.34 |
7711.T | Sukegawa Electric Co Ltd | 0.09 | 1.74 | 1.61 |
7859.T | Almedio Inc | 0.12 | 1.13 | 1.03 |
Low | High | |
Unlevered beta | 1 | 1.18 |
Relevered beta | 1 | 1.18 |
Adjusted relevered beta | 1 | 1.12 |
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.