3850.T WACC - Weighted Average Cost of Capital
The WACC of NTT Data Intramart Corp (3850.T) is 7.8%.
| Range | Selected | |
| Cost of equity | 6.5% - 9.1% | 7.8% |
| Tax rate | 29.0% - 31.0% | 30% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.5% - 9.0% | 7.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.84 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 9.1% |
| Tax rate | 29.0% | 31.0% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.5% | 9.0% |
| Selected WACC | 7.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3850.T | NTT Data Intramart Corp | 0 | 0.49 | 0.49 |
| 2330.T | Forside Co Ltd | 0.04 | 0.86 | 0.83 |
| 3741.T | Systems Engineering Consultants Co Ltd | 0 | 1.02 | 1.02 |
| 3917.T | iRidge Inc | 0.38 | 0.72 | 0.57 |
| 3919.T | PiPEDO HD Inc | 0.07 | 1.32 | 1.26 |
| 3921.T | NEOJAPAN Inc | 0 | 1 | 1 |
| 3992.T | Needs Well Inc | 0 | 1.4 | 1.39 |
| 4667.T | Aisan Technology Co Ltd | 0.04 | 0.77 | 0.75 |
| 4829.T | Nihon Enterprise Co Ltd | 0.04 | 0.79 | 0.76 |
| 6172.T | Metaps Inc | 0.2 | 0.73 | 0.64 |
| Low | High | |
| Unlevered beta | 0.76 | 0.9 |
| Relevered beta | 0.76 | 0.91 |
| Adjusted relevered beta | 0.84 | 0.94 |
3850.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 3850.T:
cost_of_equity (7.80%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.84) + 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.