6930.T WACC - Weighted Average Cost of Capital
The WACC of Nippon Antenna Co Ltd (6930.T) is 6.4%.
| Range | Selected | |
| Cost of equity | 5.1% - 7.7% | 6.4% |
| Tax rate | 8.3% - 18.4% | 13.35% |
| Cost of debt | 4.0% - 16.3% | 10.15% |
| WACC | 5.0% - 7.9% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.35 | 0.53 |
| Additional risk adjustments | 1.5% | 2.0% |
| Cost of equity | 5.1% | 7.7% |
| Tax rate | 8.3% | 18.4% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 4.0% | 16.3% |
| After-tax WACC | 5.0% | 7.9% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 6930.T | Nippon Antenna Co Ltd | 0.04 | 0.6 | 0.58 |
| 005870.KS | Huneed Technologies | 0.01 | -0.53 | -0.53 |
| 010170.KQ | Taihan Fiberoptics Co Ltd | 1.83 | 0.72 | 0.28 |
| 482.HK | Sandmartin International Holdings Ltd | 3.85 | -0.33 | -0.08 |
| 6704.T | Iwatsu Electric Co Ltd | 0.27 | -0.01 | -0.01 |
| 6715.T | Nakayo Inc | 0.05 | -0.21 | -0.2 |
| 6815.T | Uniden Holdings Corp | 0.22 | 1.04 | 0.88 |
| 6822.T | Oi Electric Co Ltd | 1.63 | 0.73 | 0.3 |
| 6838.T | Tamagawa Holdings Co Ltd | 0.8 | 1.23 | 0.72 |
| QS9.SI | Global Invacom Group Ltd | 2.1 | 0.17 | 0.06 |
| Low | High | |
| Unlevered beta | 0.03 | 0.29 |
| Relevered beta | 0.03 | 0.3 |
| Adjusted relevered beta | 0.35 | 0.53 |
6930.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 6930.T:
cost_of_equity (6.40%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.35) + risk_adjustments (1.75%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.