2327.T WACC - Weighted Average Cost of Capital
The WACC of NS Solutions Corp (2327.T) is 6.2%.
| Range | Selected | |
| Cost of equity | 5.4% - 7.3% | 6.35% |
| Tax rate | 29.1% - 29.7% | 29.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.3% - 7.1% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.66 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.4% | 7.3% |
| Tax rate | 29.1% | 29.7% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.3% | 7.1% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 2327.T | NS Solutions Corp | 0.04 | 0.35 | 0.34 |
| 1973.T | NEC Networks & System Integration Corp | 0.02 | 0.53 | 0.52 |
| 3626.T | TIS Inc | 0.04 | 0.5 | 0.49 |
| 3636.T | Mitsubishi Research Institute Inc | 0.02 | 0.95 | 0.94 |
| 4812.T | Information Services International-Dentsu Ltd | 0 | 0.47 | 0.47 |
| 7518.T | Net One Systems Co Ltd | 0.08 | 0.47 | 0.45 |
| 8056.T | Nihon Unisys Ltd | 0.08 | 0.55 | 0.52 |
| 9682.T | DTS Corp | 0.88 | 0.72 | 0.45 |
| 9719.T | SCSK Corp | 0.06 | 0.77 | 0.75 |
| 9759.T | NSD Co Ltd | 0.01 | 0.43 | 0.43 |
| Low | High | |
| Unlevered beta | 0.46 | 0.5 |
| Relevered beta | 0.49 | 0.54 |
| Adjusted relevered beta | 0.66 | 0.69 |
2327.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 2327.T:
cost_of_equity (6.35%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.66) + 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.