The WACC of Arteria Networks Corp (4423.T) is 5.6%.
Range | Selected | |
Cost of equity | 5.8% - 8.3% | 7.05% |
Tax rate | 30.2% - 30.4% | 30.3% |
Cost of debt | 4.0% - 4.5% | 4.25% |
WACC | 4.7% - 6.5% | 5.6% |
Category | Low | High |
Long-term bond rate | 1.4% | 1.9% |
Equity market risk premium | 6.1% | 7.1% |
Adjusted beta | 0.71 | 0.83 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.8% | 8.3% |
Tax rate | 30.2% | 30.4% |
Debt/Equity ratio | 0.53 | 0.53 |
Cost of debt | 4.0% | 4.5% |
After-tax WACC | 4.7% | 6.5% |
Selected WACC | 5.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
4423.T | Arteria Networks Corp | 0.53 | 0.77 | 0.56 |
3843.T | FreeBit Co Ltd | 0.67 | 0.94 | 0.64 |
3934.T | Benefit Japan Co Ltd | 0.19 | 0.6 | 0.53 |
4347.T | Broadmedia Corp | 0.08 | 0.37 | 0.35 |
603322.SS | Super Telecom Co Ltd | 0.08 | 1.03 | 0.98 |
9416.T | Vision Inc | 0.01 | 0.59 | 0.59 |
9418.T | USEN NEXT HOLDINGS Co Ltd | 0.17 | 0.49 | 0.44 |
9450.T | Fibergate Inc | 0.32 | 0.46 | 0.37 |
LINK.JK | Link Net Tbk PT | 1.48 | 0.49 | 0.24 |
MNF.AX | MNF Group Ltd | 0.04 | -0.02 | -0.02 |
Low | High | |
Unlevered beta | 0.41 | 0.54 |
Relevered beta | 0.57 | 0.75 |
Adjusted relevered beta | 0.71 | 0.83 |
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 4423.T:
cost_of_equity (7.05%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.71) + 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.