7433.T WACC - Weighted Average Cost of Capital
The WACC of Hakuto Co Ltd (7433.T) is 6.2%.
| Range | Selected | |
| Cost of equity | 6.6% - 8.6% | 7.6% |
| Tax rate | 30.4% - 30.9% | 30.65% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.4% - 6.9% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.84 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.6% | 8.6% |
| Tax rate | 30.4% | 30.9% |
| Debt/Equity ratio | 0.45 | 0.45 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.4% | 6.9% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7433.T | Hakuto Co Ltd | 0.45 | 0.74 | 0.56 |
| 2715.T | Elematec Corp | 0 | 0.91 | 0.91 |
| 2760.T | Tokyo Electron Device Ltd | 0.53 | 0.91 | 0.67 |
| 7467.T | Hagiwara Electric Holdings Co Ltd | 1.33 | 1.1 | 0.57 |
| 8068.T | Ryoyo Electro Corp | 0.32 | 0.72 | 0.59 |
| 8137.T | Sun-Wa Technos Corp | 0.22 | 0.9 | 0.77 |
| 8150.T | Sanshin Electronics Co Ltd | 2.46 | 0.76 | 0.28 |
| 8159.T | Tachibana Eletech Co Ltd | 0.15 | 1.16 | 1.05 |
| 9422.T | Conexio Corp | 0 | 0.59 | 0.59 |
| 9908.T | Nihon Denkei Co Ltd | 0.62 | 0.51 | 0.36 |
| Low | High | |
| Unlevered beta | 0.58 | 0.62 |
| Relevered beta | 0.76 | 0.82 |
| Adjusted relevered beta | 0.84 | 0.88 |
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.