6753.T WACC - Weighted Average Cost of Capital

The WACC of Sharp Corp (6753.T) is 11.7%.

The Cost of Equity of Sharp Corp (6753.T) is 13.25%.

The Cost of Debt of Sharp Corp (6753.T) is 12.70%.

	Range	Selected
Cost of equity	10.90% - 15.60%	13.25%
Tax rate	14.50% - 19.30%	16.90%
Cost of debt	4.00% - 21.40%	12.70%
WACC	7.0% - 16.5%	11.7%

WACC

6753.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.56	1.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	15.60%

Tax rate	14.50%	19.30%
Debt/Equity ratio	1.08	1.08
Cost of debt	4.00%	21.40%

After-tax WACC	7.0%	16.5%


Selected WACC	11.7%

6753.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 6753.T:

cost_of_equity (13.25%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.56) + 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.