9060.T WACC - Weighted Average Cost of Capital
The WACC of Japan Logistic Systems Corp (9060.T) is 3.0%.
| Range | Selected | |
| Cost of equity | 4.5% - 6.4% | 5.45% |
| Tax rate | 42.2% - 44.7% | 43.45% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 2.8% - 3.3% | 3.0% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.5 | 0.57 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 4.5% | 6.4% |
| Tax rate | 42.2% | 44.7% |
| Debt/Equity ratio | 3.76 | 3.76 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 2.8% | 3.3% |
| Selected WACC | 3.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9060.T | Japan Logistic Systems Corp | 3.76 | 0.29 | 0.09 |
| 9017.T | Niigata Kotsu Co Ltd | 3.34 | 0.15 | 0.05 |
| 9033.T | Hiroshima Electric Railway Co Ltd | 1.44 | 0.17 | 0.09 |
| 9055.T | Alps Logistics Co Ltd | 0.07 | 0.15 | 0.14 |
| 9067.T | Maruwn Corp | 0.03 | 0.53 | 0.52 |
| 9078.T | S Line Co Ltd | 0.08 | 0.05 | 0.05 |
| 9082.T | Daiwa Motor Transportation Co Ltd | 4.17 | 0.04 | 0.01 |
| 9083.T | Shinki Bus Co Ltd | 0.16 | 0.07 | 0.07 |
| 9312.T | Keihin Co Ltd | 0.5 | 0.49 | 0.38 |
| 9358.T | Utoc Corp | 0.04 | 0.53 | 0.52 |
| Low | High | |
| Unlevered beta | 0.08 | 0.11 |
| Relevered beta | 0.25 | 0.36 |
| Adjusted relevered beta | 0.5 | 0.57 |
9060.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 9060.T:
cost_of_equity (5.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.5) + 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.