3622.T
Netyear Group Corp
Price:  
643.00 
JPY
Volume:  
12,500.00
Japan | Media
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3622.T WACC - Weighted Average Cost of Capital

The WACC of Netyear Group Corp (3622.T) is 6.2%.

The Cost of Equity of Netyear Group Corp (3622.T) is 8.80%.
The Cost of Debt of Netyear Group Corp (3622.T) is 5.00%.

Range Selected
Cost of equity 6.90% - 10.70% 8.80%
Tax rate 27.60% - 28.50% 28.05%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.3% - 7.1% 6.2%
WACC

3622.T WACC calculation

Category Low High
Long-term bond rate 1.4% 1.9%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.9 1.17
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 10.70%
Tax rate 27.60% 28.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 5.3% 7.1%
Selected WACC 6.2%

3622.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 3622.T:

cost_of_equity (8.80%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.9) + 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.