6962.T WACC - Weighted Average Cost of Capital
The WACC of Daishinku Corp (6962.T) is 5.7%.
| Range | Selected | |
| Cost of equity | 9.4% - 12.2% | 10.8% |
| Tax rate | 29.4% - 30.4% | 29.9% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.1% - 6.3% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.3 | 1.37 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.4% | 12.2% |
| Tax rate | 29.4% | 30.4% |
| Debt/Equity ratio | 1.85 | 1.85 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.1% | 6.3% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6962.T | Daishinku Corp | 1.85 | 1.26 | 0.55 |
| 6658.T | Shirai Electronics Industrial Co Ltd | 0.34 | 0.82 | 0.67 |
| 6779.T | Nihon Dempa Kogyo Co Ltd | 1.66 | 1.52 | 0.7 |
| 6785.T | Suzuki Co Ltd | 0.11 | 0.88 | 0.82 |
| 6837.T | Kyosha Co Ltd | 1.49 | 1.03 | 0.5 |
| 6928.T | Enomoto Co Ltd | 0.43 | 0.84 | 0.65 |
| 6957.T | Shibaura Electronics Co Ltd | 0 | 0.83 | 0.83 |
| 6961.T | Enplas Corp | 0.04 | 0.89 | 0.87 |
| 6989.T | Hokuriku Electric Industry Co Ltd | 0.5 | 0.83 | 0.61 |
| 6994.T | Shizuki Electric Co Inc | 0.64 | 0.76 | 0.52 |
| Low | High | |
| Unlevered beta | 0.63 | 0.68 |
| Relevered beta | 1.45 | 1.55 |
| Adjusted relevered beta | 1.3 | 1.37 |
6962.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 6962.T:
cost_of_equity (10.80%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.3) + 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.