6835.T WACC - Weighted Average Cost of Capital
The WACC of Allied Telesis Holdings KK (6835.T) is 6.9%.
| Range | Selected | |
| Cost of equity | 6.1% - 11.6% | 8.85% |
| Tax rate | 35.6% - 39.2% | 37.4% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.0% - 8.9% | 6.9% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.76 | 1.29 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 11.6% |
| Tax rate | 35.6% | 39.2% |
| Debt/Equity ratio | 0.44 | 0.44 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.0% | 8.9% |
| Selected WACC | 6.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6835.T | Allied Telesis Holdings KK | 0.44 | 0.59 | 0.46 |
| 3062.TW | CyberTAN Technology Inc | 0.07 | 1.51 | 1.45 |
| 603042.SS | Nanjing Huamai Technology Co Ltd | 0.1 | 1.52 | 1.44 |
| 6675.T | SAXA Holdings Inc | 0.11 | 0.57 | 0.54 |
| 6704.T | Iwatsu Electric Co Ltd | 0.27 | -0.01 | -0.01 |
| 6715.T | Nakayo Inc | 1.13 | -0.22 | -0.13 |
| 6815.T | Uniden Holdings Corp | 0.22 | 1.04 | 0.92 |
| 6822.T | Oi Electric Co Ltd | 1.38 | 0.73 | 0.39 |
| GPACKET.KL | Green Packet Bhd | 0.06 | 2 | 1.93 |
| VINDHYATEL.NS | Vindhya Telelinks Ltd | 0.25 | 1.77 | 1.54 |
| Low | High | |
| Unlevered beta | 0.51 | 1.13 |
| Relevered beta | 0.64 | 1.43 |
| Adjusted relevered beta | 0.76 | 1.29 |
6835.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 6835.T:
cost_of_equity (8.85%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.76) + 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.