6444.T WACC - Weighted Average Cost of Capital

The WACC of Sanden Holdings Corp (6444.T) is 6.4%.

The Cost of Equity of Sanden Holdings Corp (6444.T) is 20.70%.

The Cost of Debt of Sanden Holdings Corp (6444.T) is 5.50%.

	Range	Selected
Cost of equity	16.90% - 24.50%	20.70%
Tax rate	27.70% - 30.60%	29.15%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.0% - 7.8%	6.4%

WACC

6444.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	2.53	3.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.90%	24.50%

Tax rate	27.70%	30.60%
Debt/Equity ratio	5.61	5.61
Cost of debt	4.00%	7.00%

After-tax WACC	5.0%	7.8%


Selected WACC	6.4%

6444.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 6444.T:

cost_of_equity (20.70%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (2.53) + 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.