7282.T WACC - Weighted Average Cost of Capital
The WACC of Toyoda Gosei Co Ltd (7282.T) is 7.4%.
| Range | Selected | |
| Cost of equity | 7.4% - 9.8% | 8.6% |
| Tax rate | 24.0% - 28.1% | 26.05% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.5% - 8.3% | 7.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.99 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.4% | 9.8% |
| Tax rate | 24.0% | 28.1% |
| Debt/Equity ratio | 0.28 | 0.28 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.5% | 8.3% |
| Selected WACC | 7.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7282.T | Toyoda Gosei Co Ltd | 0.28 | 1.19 | 0.99 |
| 5191.T | Sumitomo Riko Co Ltd | 0.42 | 1.37 | 1.05 |
| 5334.T | NGK Spark Plug Co Ltd | 0.18 | 1.22 | 1.08 |
| 5991.T | NHK Spring Co Ltd | 0.19 | 1.06 | 0.94 |
| 6923.T | Stanley Electric Co Ltd | 0.1 | 0.75 | 0.7 |
| 6995.T | Tokai Rika Co Ltd | 0.05 | 0.87 | 0.83 |
| 7240.T | NOK Corp | 0.21 | 0.88 | 0.76 |
| 7241.T | Futaba Industrial Co Ltd | 0.76 | 1.28 | 0.83 |
| 7242.T | KYB Corp | 0.62 | 0.79 | 0.55 |
| 7276.T | Koito Manufacturing Co Ltd | 0.01 | 0.8 | 0.79 |
| Low | High | |
| Unlevered beta | 0.81 | 0.88 |
| Relevered beta | 0.99 | 1.06 |
| Adjusted relevered beta | 0.99 | 1.04 |
7282.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 7282.T:
cost_of_equity (8.60%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.99) + 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.