9984.T WACC - Weighted Average Cost of Capital

The WACC of SoftBank Group Corp (9984.T) is 5.6%.

The Cost of Equity of SoftBank Group Corp (9984.T) is 6.80%.

The Cost of Debt of SoftBank Group Corp (9984.T) is 6.95%.

	Range	Selected
Cost of equity	5.10% - 8.50%	6.80%
Tax rate	27.70% - 30.60%	29.15%
Cost of debt	4.00% - 9.90%	6.95%
WACC	3.7% - 7.4%	5.6%

WACC

9984.T WACC calculation

Category	Low	High

Long-term bond rate	1.4%	1.9%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.61	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.10%	8.50%

Tax rate	27.70%	30.60%
Debt/Equity ratio	1.88	1.88
Cost of debt	4.00%	9.90%

After-tax WACC	3.7%	7.4%


Selected WACC	5.6%

9984.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 9984.T:

cost_of_equity (6.80%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.61) + 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.