7593.T WACC - Weighted Average Cost of Capital
The WACC of VT Holdings Co Ltd (7593.T) is 5.0%.
| Range | Selected | |
| Cost of equity | 7.0% - 10.5% | 8.75% |
| Tax rate | 29.1% - 31.9% | 30.5% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 5.7% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.92 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.0% | 10.5% |
| Tax rate | 29.1% | 31.9% |
| Debt/Equity ratio | 1.78 | 1.78 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 5.7% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7593.T | VT Holdings Co Ltd | 1.21 | 0.5 | 0.27 |
| 3186.T | Nextage Co Ltd | 0.82 | 0.81 | 0.52 |
| 3538.T | Willplus Holdings Corp | 1.54 | 0.83 | 0.4 |
| 7509.T | I.A Group Corp | 0.75 | 0.26 | 0.17 |
| 7599.T | IDOM Inc | 0.72 | 0.85 | 0.57 |
| 7605.T | Fuji Corp (Miyagi) | 0.02 | 0.73 | 0.72 |
| 7676.T | Goodspeed Co Ltd | 5.44 | 0.12 | 0.02 |
| 8291.T | Nissan Tokyo Sales Holdings Co Ltd | 0.41 | 0.81 | 0.63 |
| 9832.T | Autobacs Seven Co Ltd | 0.32 | 0.48 | 0.39 |
| 9856.T | KU Holdings Co Ltd | 0.27 | 0.81 | 0.68 |
| Low | High | |
| Unlevered beta | 0.4 | 0.54 |
| Relevered beta | 0.88 | 1.19 |
| Adjusted relevered beta | 0.92 | 1.13 |
7593.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 7593.T:
cost_of_equity (8.75%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.92) + 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.