7433.T
Hakuto Co Ltd
Price:  
3,700 
JPY
Volume:  
42,700
Japan | Electronic Equipment, Instruments & Components

7433.T WACC - Weighted Average Cost of Capital

The WACC of Hakuto Co Ltd (7433.T) is 6.2%.

The Cost of Equity of Hakuto Co Ltd (7433.T) is 7.6%.
The Cost of Debt of Hakuto Co Ltd (7433.T) is 4.25%.

RangeSelected
Cost of equity6.6% - 8.6%7.6%
Tax rate30.4% - 30.9%30.65%
Cost of debt4.0% - 4.5%4.25%
WACC5.4% - 6.9%6.2%
WACC

7433.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.840.88
Additional risk adjustments0.0%0.5%
Cost of equity6.6%8.6%
Tax rate30.4%30.9%
Debt/Equity ratio
0.450.45
Cost of debt4.0%4.5%
After-tax WACC5.4%6.9%
Selected WACC6.2%

7433.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 7433.T:

cost_of_equity (7.60%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.84) + 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.