3186.T WACC - Weighted Average Cost of Capital

The WACC of Nextage Co Ltd (3186.T) is 5.1%.

The Cost of Equity of Nextage Co Ltd (3186.T) is 5.80%.

The Cost of Debt of Nextage Co Ltd (3186.T) is 4.25%.

	Range	Selected
Cost of equity	4.40% - 7.20%	5.80%
Tax rate	26.70% - 27.30%	27.00%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.0% - 6.2%	5.1%

WACC

3186.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.5	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.40%	7.20%

Tax rate	26.70%	27.30%
Debt/Equity ratio	0.36	0.36
Cost of debt	4.00%	4.50%

After-tax WACC	4.0%	6.2%


Selected WACC	5.1%

3186.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 3186.T:

cost_of_equity (5.80%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.5) + 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.