6634.T WACC - Weighted Average Cost of Capital
The WACC of NCXX Group Inc (6634.T) is 6.8%.
| Range | Selected | |
| Cost of equity | 5.3% - 8.4% | 6.85% |
| Tax rate | 3.9% - 7.4% | 5.65% |
| Cost of debt | 6.8% - 7.0% | 6.9% |
| WACC | 5.4% - 8.3% | 6.8% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.64 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.3% | 8.4% |
| Tax rate | 3.9% | 7.4% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 6.8% | 7.0% |
| After-tax WACC | 5.4% | 8.3% |
| Selected WACC | 6.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6634.T | NCXX Group Inc | 0.04 | 0.95 | 0.91 |
| 091440.KQ | Telefield Inc | 0.69 | -1.07 | -0.65 |
| 2321.TW | Tecom Co Ltd | 3.24 | 0.54 | 0.13 |
| 3842.T | Nextgen Inc | 0.17 | 0.85 | 0.73 |
| 4392.T | Future Innovation Group Inc | 0.56 | 1.02 | 0.66 |
| 6659.T | Media Links Co Ltd | 0.24 | 1.05 | 0.86 |
| 6696.T | P3 Inc | 0.02 | 1.32 | 1.29 |
| 6715.T | Nakayo Inc | 1.13 | -0.22 | -0.11 |
| 6838.T | Tamagawa Holdings Co Ltd | 0.75 | 1.25 | 0.73 |
| 9878.T | Sekido Co Ltd | 2.16 | 0.26 | 0.09 |
| Low | High | |
| Unlevered beta | 0.45 | 0.73 |
| Relevered beta | 0.46 | 0.76 |
| Adjusted relevered beta | 0.64 | 0.84 |
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 (0.64) + 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.