NTT.WA WACC - Weighted Average Cost of Capital

The WACC of NTT System SA (NTT.WA) is 10.3%.

The Cost of Equity of NTT System SA (NTT.WA) is 9.55%.

The Cost of Debt of NTT System SA (NTT.WA) is 27.75%.

	Range	Selected
Cost of equity	8.20% - 10.90%	9.55%
Tax rate	18.50% - 19.90%	19.20%
Cost of debt	6.40% - 49.10%	27.75%
WACC	8.0% - 12.6%	10.3%

WACC

NTT.WA WACC calculation

Category	Low	High

Long-term bond rate	5.5%	6.0%
Equity market risk premium	6.3%	7.3%
Adjusted beta	0.42	0.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.20%	10.90%

Tax rate	18.50%	19.90%
Debt/Equity ratio	0.06	0.06
Cost of debt	6.40%	49.10%

After-tax WACC	8.0%	12.6%


Selected WACC	10.3%

NTT.WA'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 NTT.WA:

cost_of_equity (9.55%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.42) + 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.