6758.T
Sony Corp
Price:  
3,732.00 
JPY
Volume:  
14,797,500.00
Japan | Household Durables
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6758.T WACC - Weighted Average Cost of Capital

The WACC of Sony Corp (6758.T) is 7.5%.

The Cost of Equity of Sony Corp (6758.T) is 8.15%.
The Cost of Debt of Sony Corp (6758.T) is 5.00%.

Range Selected
Cost of equity 6.70% - 9.60% 8.15%
Tax rate 20.60% - 21.20% 20.90%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.3% - 8.8% 7.5%
WACC

6758.T WACC calculation

Category Low High
Long-term bond rate 1.4% 1.9%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.86 1.02
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 9.60%
Tax rate 20.60% 21.20%
Debt/Equity ratio 0.18 0.18
Cost of debt 5.00% 5.00%
After-tax WACC 6.3% 8.8%
Selected WACC 7.5%

6758.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 6758.T:

cost_of_equity (8.15%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.86) + 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.