2763.T
FTGroup Co Ltd
Price:  
1,187 
JPY
Volume:  
14,500
Japan | Electronic Equipment, Instruments & Components

2763.T WACC - Weighted Average Cost of Capital

The WACC of FTGroup Co Ltd (2763.T) is 7.7%.

The Cost of Equity of FTGroup Co Ltd (2763.T) is 8.15%.
The Cost of Debt of FTGroup Co Ltd (2763.T) is 4.25%.

RangeSelected
Cost of equity6.6% - 9.7%8.15%
Tax rate30.5% - 34.1%32.3%
Cost of debt4.0% - 4.5%4.25%
WACC6.3% - 9.0%7.7%
WACC

2763.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.861.02
Additional risk adjustments0.0%0.5%
Cost of equity6.6%9.7%
Tax rate30.5%34.1%
Debt/Equity ratio
0.10.1
Cost of debt4.0%4.5%
After-tax WACC6.3%9.0%
Selected WACC7.7%

2763.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 2763.T:

cost_of_equity (8.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.86) + 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.