4344.T
Sourcenext Corp
Price:  
165 
JPY
Volume:  
1,184,900
Japan | Software

4344.T WACC - Weighted Average Cost of Capital

The WACC of Sourcenext Corp (4344.T) is 7.1%.

The Cost of Equity of Sourcenext Corp (4344.T) is 7.65%.
The Cost of Debt of Sourcenext Corp (4344.T) is 5.5%.

RangeSelected
Cost of equity6.6% - 8.7%7.65%
Tax rate5.1% - 9.8%7.45%
Cost of debt4.0% - 7.0%5.5%
WACC6.0% - 8.2%7.1%
WACC

4344.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.850.88
Additional risk adjustments0.0%0.5%
Cost of equity6.6%8.7%
Tax rate5.1%9.8%
Debt/Equity ratio
0.230.23
Cost of debt4.0%7.0%
After-tax WACC6.0%8.2%
Selected WACC7.1%

4344.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 4344.T:

cost_of_equity (7.65%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.85) + 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.