9984.T WACC - Weighted Average Cost of Capital

The WACC of SoftBank Group Corp (9984.T) is 6.5%.

The Cost of Equity of SoftBank Group Corp (9984.T) is 9.75%.

The Cost of Debt of SoftBank Group Corp (9984.T) is 5.30%.

	Range	Selected
Cost of equity	7.70% - 11.80%	9.75%
Tax rate	27.70% - 30.60%	29.15%
Cost of debt	4.00% - 6.60%	5.30%
WACC	5.1% - 7.9%	6.5%

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	1.02	1.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.70%	11.80%

Tax rate	27.70%	30.60%
Debt/Equity ratio	1.2	1.2
Cost of debt	4.00%	6.60%

After-tax WACC	5.1%	7.9%


Selected WACC	6.5%

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 (9.75%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.02) + 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.