7628.T WACC - Weighted Average Cost of Capital
The WACC of Ohashi Technica Inc (7628.T) is 5.7%.
| Range | Selected | |
| Cost of equity | 4.7% - 6.7% | 5.7% |
| Tax rate | 31.6% - 33.9% | 32.75% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.7% - 6.6% | 5.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.54 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 6.7% |
| Tax rate | 31.6% | 33.9% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.7% | 6.6% |
| Selected WACC | 5.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7628.T | Ohashi Technica Inc | 0.01 | 0.87 | 0.87 |
| 5644.T | Metalart Corp | 0.51 | 0.9 | 0.67 |
| 5985.T | Suncall Corp | 1.39 | 0.52 | 0.27 |
| 5994.T | Fine Sinter Co Ltd | 5.16 | 0.5 | 0.11 |
| 6408.T | Ogura Clutch Co Ltd | 3.84 | 0.17 | 0.05 |
| 6493.T | Nittan Valve Co Ltd | 1.22 | 0.82 | 0.45 |
| 6904.T | Harada Industry Co Ltd | 1.69 | 0.4 | 0.19 |
| 7218.T | Tanaka Seimitsu Kogyo Co Ltd | 0.4 | 0.48 | 0.37 |
| 7235.T | Tokyo Radiator Mfg Co Ltd | 0.04 | 1 | 0.98 |
| 7271.T | Yasunaga Corp | 2.38 | 0.87 | 0.33 |
| Low | High | |
| Unlevered beta | 0.31 | 0.4 |
| Relevered beta | 0.31 | 0.4 |
| Adjusted relevered beta | 0.54 | 0.6 |
7628.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 7628.T:
cost_of_equity (5.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.54) + 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.