6633.T WACC - Weighted Average Cost of Capital
The WACC of C&G Systems Inc (6633.T) is 6.4%.
| Range | Selected | |
| Cost of equity | 9.0% - 11.6% | 10.3% |
| Tax rate | 39.5% - 44.6% | 42.05% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.7% - 7.0% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.24 | 1.29 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.0% | 11.6% |
| Tax rate | 39.5% | 44.6% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.7% | 7.0% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6633.T | C&G Systems Inc | 1.09 | 0.45 | 0.28 |
| 3040.T | Soliton Systems KK | 0.01 | 0.91 | 0.9 |
| 3744.T | SIOS Technology Inc | 0.03 | 0.96 | 0.94 |
| 3804.T | System D Inc | 0.03 | 0.09 | 0.09 |
| 3853.T | Asteria Corp | 0.05 | 0.93 | 0.91 |
| 3920.T | Internetworking and Broadband Consulting Co Ltd | 0.16 | 0.87 | 0.8 |
| 3927.T | Fuva Brain Ltd | 0.02 | 1.3 | 1.29 |
| 3935.T | Edia Co Ltd | 0.25 | 1.05 | 0.91 |
| 3997.T | Trade Works Co Ltd | 0.17 | 0.91 | 0.82 |
| 4013.T | Nittsusystem Co Ltd | 0.13 | 0.43 | 0.4 |
| 4288.T | Asgent Inc | 0.09 | 1.98 | 1.89 |
| Low | High | |
| Unlevered beta | 0.82 | 0.91 |
| Relevered beta | 1.36 | 1.43 |
| Adjusted relevered beta | 1.24 | 1.29 |
6633.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 6633.T:
cost_of_equity (10.30%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.24) + 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.