9060.T WACC - Weighted Average Cost of Capital

The WACC of Japan Logistic Systems Corp (9060.T) is 3.0%.

The Cost of Equity of Japan Logistic Systems Corp (9060.T) is 5.45%.

The Cost of Debt of Japan Logistic Systems Corp (9060.T) is 4.25%.

	Range	Selected
Cost of equity	4.50% - 6.40%	5.45%
Tax rate	42.20% - 44.70%	43.45%
Cost of debt	4.00% - 4.50%	4.25%
WACC	2.8% - 3.3%	3.0%

WACC

9060.T WACC calculation

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	4.50%	6.40%

Tax rate	42.20%	44.70%
Debt/Equity ratio	3.76	3.76
Cost of debt	4.00%	4.50%

After-tax WACC	2.8%	3.3%


Selected WACC	3.0%

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.