9062.T WACC - Weighted Average Cost of Capital

The WACC of Nippon Express Co Ltd (9062.T) is 5.4%.

The Cost of Equity of Nippon Express Co Ltd (9062.T) is 7.55%.

The Cost of Debt of Nippon Express Co Ltd (9062.T) is 4.25%.

	Range	Selected
Cost of equity	6.10% - 9.00%	7.55%
Tax rate	37.10% - 43.90%	40.50%
Cost of debt	4.00% - 4.50%	4.25%
WACC	4.6% - 6.3%	5.4%

WACC

9062.T WACC calculation

Category	Low	High

Long-term bond rate	0.8%	1.2%
Equity market risk premium	5.4%	6.4%
Adjusted beta	0.99	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	6.10%	9.00%

Tax rate	37.10%	43.90%
Debt/Equity ratio	0.73	0.73
Cost of debt	4.00%	4.50%

After-tax WACC	4.6%	6.3%


Selected WACC	5.4%

9062.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 9062.T:

cost_of_equity (7.55%) = risk_free_rate (1.00%) + equity_risk_premium (5.90%) * adjusted_beta (0.99) + 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.