6141.T
DMG Mori Co Ltd
Price:  
3,307 
JPY
Volume:  
639,200
Japan | Machinery

6141.T WACC - Weighted Average Cost of Capital

The WACC of DMG Mori Co Ltd (6141.T) is 7.7%.

The Cost of Equity of DMG Mori Co Ltd (6141.T) is 8.85%.
The Cost of Debt of DMG Mori Co Ltd (6141.T) is 4.3%.

RangeSelected
Cost of equity7.4% - 10.3%8.85%
Tax rate31.3% - 34.7%33%
Cost of debt4.0% - 4.6%4.3%
WACC6.6% - 8.9%7.7%
WACC

6141.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.991.1
Additional risk adjustments0.0%0.5%
Cost of equity7.4%10.3%
Tax rate31.3%34.7%
Debt/Equity ratio
0.230.23
Cost of debt4.0%4.6%
After-tax WACC6.6%8.9%
Selected WACC7.7%

6141.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 6141.T:

cost_of_equity (8.85%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.99) + 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.