STG.AX WACC - Weighted Average Cost of Capital
The WACC of Straker Translations Ltd (STG.AX) is 7.3%.
| Range | Selected | |
| Cost of equity | 6.5% - 8.2% | 7.35% |
| Tax rate | 3.5% - 5.2% | 4.35% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 6.4% - 8.1% | 7.3% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.48 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.5% | 8.2% |
| Tax rate | 3.5% | 5.2% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 6.4% | 8.1% |
| Selected WACC | 7.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| STG.AX | Straker Translations Ltd | 0.02 | 1.9 | 1.85 |
| 150.HK | Hypebeast Ltd | 0.08 | -0.01 | -0.01 |
| 1753.HK | Duiba Group Ltd | 3.72 | 1.57 | 0.34 |
| 2334.T | Eole Inc | 0.04 | -0.35 | -0.33 |
| 2978.T | Tsukuruba Inc | 0.31 | 0.29 | 0.22 |
| 3690.T | YRGLM Inc | 0.25 | 0.45 | 0.36 |
| 3970.T | Innovation Inc | 0.94 | 0.44 | 0.23 |
| 6550.T | Fringe81 Co Ltd | 0.24 | 0.22 | 0.18 |
| 6573.T | Agile Media Network Inc | 0.03 | 0.8 | 0.78 |
| 7069.T | CyberBuzz Inc | 0.39 | 0.3 | 0.22 |
| Low | High | |
| Unlevered beta | 0.22 | 0.28 |
| Relevered beta | 0.22 | 0.28 |
| Adjusted relevered beta | 0.48 | 0.52 |
STG.AX'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 STG.AX:
cost_of_equity (7.35%) = risk_free_rate (4.25%) + equity_risk_premium (5.60%) * adjusted_beta (0.48) + 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.