8945.T WACC - Weighted Average Cost of Capital

The WACC of Sunnexta Group Inc (8945.T) is 5.2%.

The Cost of Equity of Sunnexta Group Inc (8945.T) is 5.30%.

The Cost of Debt of Sunnexta Group Inc (8945.T) is 4.75%.

	Range	Selected
Cost of equity	4.30% - 6.30%	5.30%
Tax rate	35.90% - 36.90%	36.40%
Cost of debt	4.00% - 5.50%	4.75%
WACC	4.3% - 6.2%	5.2%

WACC

8945.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.48	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	4.30%	6.30%

Tax rate	35.90%	36.90%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	5.50%

After-tax WACC	4.3%	6.2%


Selected WACC	5.2%

8945.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 8945.T:

cost_of_equity (5.30%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.48) + 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.