7182.T WACC - Weighted Average Cost of Capital
The WACC of Japan Post Bank Co Ltd (7182.T) is 4.7%.
| Range | Selected | |
| Cost of equity | 8.1% - 12.8% | 10.45% |
| Tax rate | 28.0% - 28.3% | 28.15% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.3% - 5.0% | 4.7% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.1 | 1.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.1% | 12.8% |
| Tax rate | 28.0% | 28.3% |
| Debt/Equity ratio | 5.44 | 5.44 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.3% | 5.0% |
| Selected WACC | 4.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 7182.T | Japan Post Bank Co Ltd | 5.44 | 0.8 | 0.16 |
| 8304.T | Aozora Bank Ltd | 4.16 | 0.77 | 0.19 |
| 8306.T | Mitsubishi UFJ Financial Group Inc | 4.01 | 1.43 | 0.37 |
| 8309.T | Sumitomo Mitsui Trust Holdings Inc | 7.75 | 1.09 | 0.17 |
| 8316.T | Sumitomo Mitsui Financial Group Inc | 4.5 | 1.37 | 0.32 |
| 8411.T | Mizuho Financial Group Inc | 6.31 | 1.38 | 0.25 |
| BBRI.JK | Bank Rakyat Indonesia (Persero) Tbk PT | 0.34 | 1.45 | 1.17 |
| D05.SI | DBS Group Holdings Ltd | 0.55 | 1.49 | 1.07 |
| ICICIBANK.NS | ICICI Bank Ltd | 0.21 | 0.25 | 0.21 |
| QNBK.QA | Qatar National Bank QPSC | 0.68 | 0.9 | 0.61 |
| Low | High | |
| Unlevered beta | 0.23 | 0.34 |
| Relevered beta | 1.15 | 1.69 |
| Adjusted relevered beta | 1.1 | 1.46 |
7182.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 7182.T:
cost_of_equity (10.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.1) + 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.