7856.T WACC - Weighted Average Cost of Capital
The WACC of Hagihara Industries Inc (7856.T) is 5.8%.
| Range | Selected | |
| Cost of equity | 4.7% - 8.1% | 6.4% |
| Tax rate | 30.6% - 31.1% | 30.85% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 7.2% | 5.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.55 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.7% | 8.1% |
| Tax rate | 30.6% | 31.1% |
| Debt/Equity ratio | 0.24 | 0.24 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 7.2% |
| Selected WACC | 5.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7856.T | Hagihara Industries Inc | 0.24 | 0.66 | 0.57 |
| 3104.T | Fujibo Holdings Inc | 0.01 | 0.98 | 0.97 |
| 3109.T | Shikibo Ltd | 2.13 | 0.5 | 0.2 |
| 3204.T | Toabo Corp | 3.6 | 0.26 | 0.07 |
| 3408.T | Sakai Ovex Co Ltd | 0.05 | 0.7 | 0.68 |
| 3524.T | Nitto Seimo Co Ltd | 4.45 | 0.51 | 0.13 |
| 3551.T | Dynic Corp | 2.71 | 0.89 | 0.31 |
| 3577.T | Tokai Senko KK | 0.67 | 0.34 | 0.23 |
| 3580.T | Komatsu Matere Co Ltd | 1.07 | 0.71 | 0.41 |
| 9837.T | Morito Co Ltd | 0.04 | 0.86 | 0.83 |
| Low | High | |
| Unlevered beta | 0.28 | 0.47 |
| Relevered beta | 0.33 | 0.72 |
| Adjusted relevered beta | 0.55 | 0.81 |
7856.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 7856.T:
cost_of_equity (6.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.55) + 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.