3471.T WACC - Weighted Average Cost of Capital
The WACC of Mitsui Fudosan Logistics Park Inc (3471.T) is 4.6%.
| Range | Selected | |
| Cost of equity | 3.9% - 5.6% | 4.75% |
| Tax rate | 0.0% - 0.0% | 0% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.0% - 5.3% | 4.6% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.41 | 0.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 3.9% | 5.6% |
| Tax rate | 0.0% | 0.0% |
| Debt/Equity ratio | 0.48 | 0.48 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.0% | 5.3% |
| Selected WACC | 4.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 3471.T | Mitsui Fudosan Logistics Park Inc | 0.48 | 0.28 | 0.19 |
| 3226.T | Nippon Accommodations Fund Inc | 0.57 | 0.13 | 0.09 |
| 3249.T | Industrial & Infrastructure Fund Investment Corp | 0.95 | 0.28 | 0.14 |
| 3281.T | GLP J-REIT | 0.66 | 0.11 | 0.07 |
| 3282.T | Comforia Residential Reit Inc | 0.79 | 0.08 | 0.05 |
| 3283.T | Nippon Prologis REIT Inc | 0.5 | 0.09 | 0.06 |
| 3466.T | LaSalle Logiport REIT | 0.69 | 0.14 | 0.09 |
| 3481.T | Mitsubishi Estate Logistics REIT Investment Corp | 0.64 | 0.3 | 0.18 |
| 3493.T | Itochu Advance Logistics Investment Corp | 0.74 | 0.2 | 0.12 |
| 8967.T | Japan Logistics Fund Inc | 0.47 | 0.32 | 0.22 |
| Low | High | |
| Unlevered beta | 0.09 | 0.13 |
| Relevered beta | 0.12 | 0.19 |
| Adjusted relevered beta | 0.41 | 0.46 |
3471.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 3471.T:
cost_of_equity (4.75%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.41) + 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.