7048.T WACC - Weighted Average Cost of Capital
The WACC of Veltra Corp (7048.T) is 6.0%.
| Range | Selected | |
| Cost of equity | 5.1% - 8.9% | 7% |
| Tax rate | 6.9% - 8.5% | 7.7% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.4% - 7.6% | 6.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.44 | 0.77 |
| Additional risk adjustments | 1.0% | 1.5% |
| Cost of equity | 5.1% | 8.9% |
| Tax rate | 6.9% | 8.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.4% | 7.6% |
| Selected WACC | 6.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7048.T | Veltra Corp | 0.94 | 0.93 | 0.5 |
| 1039.HK | Changyou Alliance Group Ltd | 2.39 | -0.18 | -0.06 |
| 2656.T | Vector Inc | 0 | 1.4 | 1.4 |
| 3137.T | Fundely Co Ltd | 1.37 | 1.07 | 0.48 |
| 3138.T | Fujisan Magazine Service Co Ltd | 0.18 | 0.29 | 0.25 |
| 3195.T | Generation Pass Co Ltd | 0.3 | 0.08 | 0.06 |
| 3773.HK | NNK Group Ltd | 0.21 | -0.07 | -0.06 |
| 3807.T | Fisco Ltd | 0 | 1.4 | 1.4 |
| 3981.T | Beaglee Inc | 0.58 | 1.01 | 0.66 |
| 3995.T | Skiyaki Inc | 0.04 | 0.01 | 0.01 |
| 4487.T | Space Market Inc | 0.05 | 0.11 | 0.11 |
| Low | High | |
| Unlevered beta | 0.11 | 0.48 |
| Relevered beta | 0.16 | 0.66 |
| Adjusted relevered beta | 0.44 | 0.77 |
7048.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 7048.T:
cost_of_equity (7.00%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.44) + risk_adjustments (1.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.