4952.T WACC - Weighted Average Cost of Capital

The WACC of SDS Biotech KK (4952.T) is 5.6%.

The Cost of Equity of SDS Biotech KK (4952.T) is 6.70%.

The Cost of Debt of SDS Biotech KK (4952.T) is 4.25%.

	Range	Selected
Cost of equity	5.60% - 7.80%	6.70%
Tax rate	30.70% - 43.60%	37.15%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.8% - 6.4%	5.6%

WACC

4952.T WACC calculation

Category	Low	High

Long-term bond rate	0.8%	1.2%
Equity market risk premium	5.4%	6.4%
Adjusted beta	0.88	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.60%	7.80%

Tax rate	30.70%	43.60%
Debt/Equity ratio	0.37	0.37
Cost of debt	4.00%	4.50%

After-tax WACC	4.8%	6.4%


Selected WACC	5.6%

4952.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 4952.T:

cost_of_equity (6.70%) = risk_free_rate (1.00%) + equity_risk_premium (5.90%) * adjusted_beta (0.88) + 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.