NTT.WA WACC - Weighted Average Cost of Capital

The WACC of NTT System SA (NTT.WA) is 13.8%.

The Cost of Equity of NTT System SA (NTT.WA) is 11.05%.

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

	Range	Selected
Cost of equity	9.60% - 12.50%	11.05%
Tax rate	18.50% - 19.40%	18.95%
Cost of debt	6.40% - 49.10%	27.75%
WACC	8.6% - 19.1%	13.8%

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	0.65	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	12.50%

Tax rate	18.50%	19.40%
Debt/Equity ratio	0.32	0.32
Cost of debt	6.40%	49.10%

After-tax WACC	8.6%	19.1%


Selected WACC	13.8%

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 (11.05%) = risk_free_rate (5.75%) + equity_risk_premium (6.80%) * adjusted_beta (0.65) + 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.