2675.T WACC - Weighted Average Cost of Capital

The WACC of Dynac Holdings Corp (2675.T) is 4.1%.

The Cost of Equity of Dynac Holdings Corp (2675.T) is 5.30%.

The Cost of Debt of Dynac Holdings Corp (2675.T) is 5.50%.

	Range	Selected
Cost of equity	4.00% - 6.60%	5.30%
Tax rate	42.60% - 48.70%	45.65%
Cost of debt	4.00% - 7.00%	5.50%
WACC	3.1% - 5.1%	4.1%

WACC

2675.T WACC calculation

Category	Low	High

Long-term bond rate	0.8%	1.2%
Equity market risk premium	5.4%	6.4%
Adjusted beta	0.6	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.00%	6.60%

Tax rate	42.60%	48.70%
Debt/Equity ratio	1	1
Cost of debt	4.00%	7.00%

After-tax WACC	3.1%	5.1%


Selected WACC	4.1%

2675.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 2675.T:

cost_of_equity (5.30%) = risk_free_rate (1.00%) + equity_risk_premium (5.90%) * adjusted_beta (0.6) + 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.