7031.T WACC - Weighted Average Cost of Capital
The WACC of Inbound Tech Inc (7031.T) is 6.2%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.3% | 7.2% |
| Tax rate | 32.2% - 32.8% | 32.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.3% - 7.0% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.77 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.3% |
| Tax rate | 32.2% | 32.8% |
| Debt/Equity ratio | 0.31 | 0.31 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.3% | 7.0% |
| Selected WACC | 6.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7031.T | Inbound Tech Inc | 0.31 | 0.15 | 0.12 |
| 2159.HK | Mediwelcome Healthcare Management & Technology Inc | 0.57 | 0.64 | 0.46 |
| 2983.T | Arr Planner Co Ltd | 2.2 | 0.82 | 0.33 |
| 4494.T | Vario Secure Inc | 0.35 | 0.75 | 0.61 |
| 4936.T | Axxzia Inc | 0.09 | 1.32 | 1.24 |
| 5858.T | STG Co Ltd | 1.05 | 1.03 | 0.6 |
| 605081.SS | Shanghai Taihe Water Environmental Technology Development Co Ltd | 0.05 | 1 | 0.97 |
| ILS.VN | International Investment Trade and Service Joint Stock Company | 0.12 | 0.01 | 0.01 |
| SZE.VN | Sonadezi Environment JSC | 0.18 | 0.72 | 0.64 |
| Low | High | |
| Unlevered beta | 0.49 | 0.61 |
| Relevered beta | 0.66 | 0.73 |
| Adjusted relevered beta | 0.77 | 0.82 |
7031.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 7031.T:
cost_of_equity (7.20%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.77) + 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.