9424.T WACC - Weighted Average Cost of Capital
The WACC of Japan Communications Inc (9424.T) is 6.5%.
| Range | Selected | |
| Cost of equity | 5.2% - 7.8% | 6.5% |
| Tax rate | 12.8% - 14.8% | 13.8% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.2% - 7.8% | 6.5% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.62 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 7.8% |
| Tax rate | 12.8% | 14.8% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.2% | 7.8% |
| Selected WACC | 6.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9424.T | Japan Communications Inc | 0.08 | 0.98 | 0.92 |
| 002148.SZ | Beijing Bewinner Communications Co Ltd | 0 | 1.16 | 1.16 |
| 4395.T | Accrete Inc | 0.09 | 0.69 | 0.65 |
| 9419.T | WirelessGate Inc | 0.1 | 0.85 | 0.78 |
| 9433.T | KDDI Corp | 0.23 | 0.44 | 0.37 |
| 9434.T | SoftBank Corp | 0.61 | 0.37 | 0.24 |
| 9436.T | Okinawa Cellular Telephone Co | 0 | 0.32 | 0.32 |
| 9984.T | SoftBank Group Corp | 1.88 | 1.64 | 0.63 |
| TTML.NS | Tata Teleservices (Maharashtra) Ltd | 1.72 | 1.2 | 0.49 |
| VTL.NZ | Vital Ltd | 2.82 | 0.6 | 0.18 |
| Low | High | |
| Unlevered beta | 0.44 | 0.64 |
| Relevered beta | 0.43 | 0.64 |
| Adjusted relevered beta | 0.62 | 0.76 |
9424.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 9424.T:
cost_of_equity (6.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.62) + 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.