4423.T
Arteria Networks Corp
Price:  
1,979 
JPY
Volume:  
5,800
Japan | Diversified Telecommunication Services

4423.T WACC - Weighted Average Cost of Capital

The WACC of Arteria Networks Corp (4423.T) is 5.6%.

The Cost of Equity of Arteria Networks Corp (4423.T) is 7.05%.
The Cost of Debt of Arteria Networks Corp (4423.T) is 4.25%.

RangeSelected
Cost of equity5.8% - 8.3%7.05%
Tax rate30.2% - 30.4%30.3%
Cost of debt4.0% - 4.5%4.25%
WACC4.7% - 6.5%5.6%
WACC

4423.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.710.83
Additional risk adjustments0.0%0.5%
Cost of equity5.8%8.3%
Tax rate30.2%30.4%
Debt/Equity ratio
0.530.53
Cost of debt4.0%4.5%
After-tax WACC4.7%6.5%
Selected WACC5.6%

4423.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 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.