4726.T WACC - Weighted Average Cost of Capital
The WACC of SB Technology Corp (4726.T) is 7.7%.
| Range | Selected | |
| Cost of equity | 6.2% - 9.3% | 7.75% |
| Tax rate | 31.1% - 32.8% | 31.95% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.1% - 9.2% | 7.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.78 | 0.96 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 9.3% |
| Tax rate | 31.1% | 32.8% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.1% | 9.2% |
| Selected WACC | 7.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 4726.T | SB Technology Corp | 0.01 | 0.49 | 0.48 |
| 2375.T | GiG Works Inc | 0.45 | 1.95 | 1.49 |
| 3630.T | Densan System Co Ltd | 0.04 | 0.53 | 0.52 |
| 3844.T | Comture Corp | 0 | 1.08 | 1.07 |
| 4687.T | TDC Soft Inc | 0.01 | 1.22 | 1.21 |
| 4722.T | Future Corp | 0.1 | 0.47 | 0.44 |
| 4725.T | CAC Holdings Corp | 0.05 | 0.53 | 0.51 |
| 4761.T | Sakura KCS Corp | 0.04 | 1.06 | 1.04 |
| 4832.T | JFE Systems Inc | 0.07 | 0.9 | 0.86 |
| 9889.T | JBCC Holdings Inc | 0 | 0.77 | 0.77 |
| Low | High | |
| Unlevered beta | 0.67 | 0.93 |
| Relevered beta | 0.67 | 0.94 |
| Adjusted relevered beta | 0.78 | 0.96 |
4726.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 4726.T:
cost_of_equity (7.75%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.78) + 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.