6599.T WACC - Weighted Average Cost of Capital
The WACC of Ebrains Inc (6599.T) is 6.6%.
| Range | Selected | |
| Cost of equity | 8.3% - 12.6% | 10.45% |
| Tax rate | 33.8% - 34.4% | 34.1% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.5% - 7.8% | 6.6% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.13 | 1.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.3% | 12.6% |
| Tax rate | 33.8% | 34.4% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.5% | 7.8% |
| Selected WACC | 6.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6599.T | Ebrains Inc | 1.1 | 0.28 | 0.16 |
| 2795.T | Nippon Primex Inc | 1.13 | 0.18 | 0.11 |
| 6413.T | Riso Kagaku Corp | 0.05 | 1.03 | 0.99 |
| 6416.T | Katsuragawa Electric Co Ltd | 1.01 | 0.54 | 0.32 |
| 6588.T | Toshiba Tec Corp | 0.24 | 1.14 | 0.98 |
| 6597.T | HPC Systems Inc | 0.16 | 1.82 | 1.64 |
| 6638.T | Mimaki Engineering Co Ltd | 0.34 | 1.69 | 1.38 |
| 6727.T | Wacom Co Ltd | 0.13 | 1.58 | 1.45 |
| 6734.T | Newtech Co Ltd | 0.04 | 0.25 | 0.24 |
| 7758.T | Sekonic Corp | 0.03 | -0.14 | -0.13 |
| 7855.T | Cardinal Co Ltd | 0.06 | 1.03 | 0.99 |
| Low | High | |
| Unlevered beta | 0.32 | 0.99 |
| Relevered beta | 1.19 | 1.64 |
| Adjusted relevered beta | 1.13 | 1.43 |
6599.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 6599.T:
cost_of_equity (10.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.13) + 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.