8881.T WACC - Weighted Average Cost of Capital
The WACC of Nisshin Group Holdings Co Ltd (8881.T) is 5.1%.
| Range | Selected | |
| Cost of equity | 7.5% - 11.1% | 9.3% |
| Tax rate | 31.4% - 32.6% | 32% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.4% - 5.8% | 5.1% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1 | 1.23 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.5% | 11.1% |
| Tax rate | 31.4% | 32.6% |
| Debt/Equity ratio | 1.9 | 1.9 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.4% | 5.8% |
| Selected WACC | 5.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 8881.T | Nisshin Group Holdings Co Ltd | 1.9 | 0.86 | 0.38 |
| 3244.T | Samty Co Ltd | 2.3 | 0.53 | 0.21 |
| 3489.T | FaithNetwork Co Ltd | 0.75 | 0.88 | 0.58 |
| 3528.T | Prospect Co Ltd | 0.59 | 1.26 | 0.9 |
| 8836.T | Rise Inc | 0.01 | 1.03 | 1.02 |
| 8890.T | Raysum Co Ltd | 0.32 | 1.44 | 1.18 |
| 8927.T | Meiho Enterprise Co Ltd | 1.57 | 0.98 | 0.48 |
| 8928.T | Anabuki Kosan Inc | 2.86 | 0.34 | 0.11 |
| 8934.T | Sun Frontier Fudousan Co Ltd | 0.91 | 0.95 | 0.59 |
| 8999.T | Grandy House Corp | 2.26 | 0.58 | 0.23 |
| Low | High | |
| Unlevered beta | 0.44 | 0.58 |
| Relevered beta | 1 | 1.34 |
| Adjusted relevered beta | 1 | 1.23 |
8881.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 8881.T:
cost_of_equity (9.30%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (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.