1448.T WACC - Weighted Average Cost of Capital

The WACC of Space Value Holdings Co Ltd (1448.T) is 5.2%.

The Cost of Equity of Space Value Holdings Co Ltd (1448.T) is 6.55%.

The Cost of Debt of Space Value Holdings Co Ltd (1448.T) is 4.40%.

	Range	Selected
Cost of equity	5.20% - 7.90%	6.55%
Tax rate	30.60% - 30.70%	30.65%
Cost of debt	4.00% - 4.80%	4.40%
WACC	4.3% - 6.1%	5.2%

WACC

1448.T WACC calculation

Category	Low	High

Long-term bond rate	0.8%	1.2%
Equity market risk premium	5.4%	6.4%
Adjusted beta	0.82	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.20%	7.90%

Tax rate	30.60%	30.70%
Debt/Equity ratio	0.62	0.62
Cost of debt	4.00%	4.80%

After-tax WACC	4.3%	6.1%


Selected WACC	5.2%

1448.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 1448.T:

cost_of_equity (6.55%) = risk_free_rate (1.00%) + equity_risk_premium (5.90%) * adjusted_beta (0.82) + 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.