6675.T WACC - Weighted Average Cost of Capital
The WACC of SAXA Holdings Inc (6675.T) is 7.3%.
| Range | Selected | |
| Cost of equity | 5.6% - 9.6% | 7.6% |
| Tax rate | 23.2% - 24.7% | 23.95% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.4% - 9.2% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.68 | 1.01 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.6% | 9.6% |
| Tax rate | 23.2% | 24.7% |
| Debt/Equity ratio | 0.07 | 0.07 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.4% | 9.2% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6675.T | SAXA Holdings Inc | 0.07 | 0.54 | 0.51 |
| 300504.SZ | Sichuan Tianyi Comheart Telecom Co Ltd | 0.03 | 1.78 | 1.74 |
| 3062.TW | CyberTAN Technology Inc | 0.07 | 1.49 | 1.41 |
| 603083.SS | CIG ShangHai Co Ltd | 0.13 | 1.93 | 1.75 |
| 603803.SS | Raisecom Technology Co Ltd | 0.11 | 1.54 | 1.41 |
| 6704.T | Iwatsu Electric Co Ltd | 0.27 | -0.01 | -0.01 |
| 6706.T | DKK Co Ltd | 0.29 | 0.58 | 0.47 |
| 6718.T | Aiphone Co Ltd | 0.01 | 0.67 | 0.66 |
| 6822.T | Oi Electric Co Ltd | 1.63 | 0.73 | 0.33 |
| 6835.T | Allied Telesis Holdings KK | 0.48 | 0.59 | 0.43 |
| Low | High | |
| Unlevered beta | 0.49 | 0.96 |
| Relevered beta | 0.52 | 1.01 |
| Adjusted relevered beta | 0.68 | 1.01 |
6675.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 6675.T:
cost_of_equity (7.60%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.68) + 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.