9759.T WACC - Weighted Average Cost of Capital
The WACC of NSD Co Ltd (9759.T) is 7.0%.
| Range | Selected | |
| Cost of equity | 5.9% - 8.2% | 7.05% |
| Tax rate | 31.1% - 31.8% | 31.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.9% - 8.2% | 7.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.73 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.9% | 8.2% |
| Tax rate | 31.1% | 31.8% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.9% | 8.2% |
| Selected WACC | 7.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9759.T | NSD Co Ltd | 0.01 | 0.43 | 0.43 |
| 3636.T | Mitsubishi Research Institute Inc | 0.01 | 0.96 | 0.95 |
| 3697.T | Shift Inc | 0.02 | 1.29 | 1.27 |
| 3762.T | Techmatrix Corp | 0.06 | 0.76 | 0.73 |
| 4348.T | Infocom Corp | 0 | -0.21 | -0.21 |
| 4722.T | Future Corp | 0.09 | 0.47 | 0.45 |
| 4726.T | SB Technology Corp | 0.01 | 0.49 | 0.48 |
| 4819.T | Digital Garage Inc | 0.26 | 0.8 | 0.68 |
| 9682.T | DTS Corp | 1.03 | 0.73 | 0.43 |
| 9889.T | JBCC Holdings Inc | 0.03 | 0.77 | 0.75 |
| Low | High | |
| Unlevered beta | 0.47 | 0.7 |
| Relevered beta | 0.6 | 0.73 |
| Adjusted relevered beta | 0.73 | 0.82 |
9759.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 9759.T:
cost_of_equity (7.05%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.73) + 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.