7167.T WACC - Weighted Average Cost of Capital
The WACC of Mebuki Financial Group Inc (7167.T) is 5.0%.
| Range | Selected | |
| Cost of equity | 7.8% - 10.6% | 9.2% |
| Tax rate | 29.7% - 29.9% | 29.8% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.6% - 5.3% | 5.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.04 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.8% | 10.6% |
| Tax rate | 29.7% | 29.9% |
| Debt/Equity ratio | 2.92 | 2.92 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.6% | 5.3% |
| Selected WACC | 5.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7167.T | Mebuki Financial Group Inc | 2.92 | 1.21 | 0.4 |
| 7173.T | Tokyo Kiraboshi Financial Group Inc | 1.02 | 1.27 | 0.74 |
| 7180.T | Kyushu Financial Group Inc | 5.07 | 1.66 | 0.36 |
| 7186.T | Concordia Financial Group Ltd | 2.23 | 1.29 | 0.5 |
| 8303.T | Shinsei Bank Ltd | 2.95 | 0.75 | 0.24 |
| 8354.T | Fukuoka Financial Group Inc | 11.78 | 1.27 | 0.14 |
| 8355.T | Shizuoka Bank Ltd | 562.53 | 0.89 | 0 |
| 8358.T | Suruga Bank Ltd | 1.04 | 0.73 | 0.42 |
| 8377.T | Hokuhoku Financial Group Inc | 3.89 | 1.22 | 0.33 |
| 8418.T | Yamaguchi Financial Group Inc | 3.06 | 1.29 | 0.41 |
| Low | High | |
| Unlevered beta | 0.35 | 0.4 |
| Relevered beta | 1.06 | 1.22 |
| Adjusted relevered beta | 1.04 | 1.15 |
7167.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 7167.T:
cost_of_equity (9.20%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.04) + 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.