6721.T WACC - Weighted Average Cost of Capital

The WACC of Wintest Corp (6721.T) is 6.1%.

The Cost of Equity of Wintest Corp (6721.T) is 6.15%.

The Cost of Debt of Wintest Corp (6721.T) is 5.50%.

	Range	Selected
Cost of equity	5.20% - 7.10%	6.15%
Tax rate	0.30% - 0.40%	0.35%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.2% - 7.1%	6.1%

WACC

6721.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.54	0.59

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.20%	7.10%

Tax rate	0.30%	0.40%
Debt/Equity ratio	0.04	0.04
Cost of debt	4.00%	7.00%

After-tax WACC	5.2%	7.1%


Selected WACC	6.1%

6721.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 6721.T:

cost_of_equity (6.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.54) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.