6634.T WACC - Weighted Average Cost of Capital

The WACC of NCXX Group Inc (6634.T) is 6.8%.

The Cost of Equity of NCXX Group Inc (6634.T) is 6.85%.

The Cost of Debt of NCXX Group Inc (6634.T) is 6.90%.

	Range	Selected
Cost of equity	5.30% - 8.40%	6.85%
Tax rate	3.90% - 7.40%	5.65%
Cost of debt	6.80% - 7.00%	6.90%
WACC	5.4% - 8.3%	6.8%

WACC

6634.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.65	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.30%	8.40%

Tax rate	3.90%	7.40%
Debt/Equity ratio	0.06	0.06
Cost of debt	6.80%	7.00%

After-tax WACC	5.4%	8.3%


Selected WACC	6.8%

6634.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 6634.T:

cost_of_equity (6.85%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.65) + 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.