9101.T WACC - Weighted Average Cost of Capital
The WACC of Nippon Yusen KK (9101.T) is 6.3%.
| Range | Selected | |
| Cost of equity | 6.0% - 8.1% | 7.05% |
| Tax rate | 5.5% - 9.0% | 7.25% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 5.4% - 7.1% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.75 | 0.8 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.0% | 8.1% |
| Tax rate | 5.5% | 9.0% |
| Debt/Equity ratio | 0.33 | 0.33 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 5.4% | 7.1% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9101.T | Nippon Yusen KK | 0.33 | 0.82 | 0.62 |
| 9104.T | Mitsui OSK Lines Ltd | 1.05 | 0.69 | 0.35 |
| 9107.T | Kawasaki Kisen Kaisha Ltd | 0.26 | 1.27 | 1.01 |
| 9110.T | NS United Kaiun Kaisha Ltd | 0.92 | 0.92 | 0.49 |
| 9115.T | Meiji Shipping Co Ltd | 6.92 | 0.74 | 0.1 |
| 9119.T | Iino Kaiun Kaisha Ltd | 1.08 | 0.92 | 0.46 |
| 9171.T | Kuribayashi Steamship Co Ltd | 2.06 | 1.5 | 0.51 |
| 9179.T | Kawasaki Kinkai Kisen Kaisha Ltd | 0.51 | 0.85 | 0.57 |
| 9310.T | Japan Transcity Corp | 0.51 | 0.93 | 0.63 |
| 9311.T | Asagami Corp | 1.25 | 0.22 | 0.1 |
| Low | High | |
| Unlevered beta | 0.48 | 0.53 |
| Relevered beta | 0.63 | 0.7 |
| Adjusted relevered beta | 0.75 | 0.8 |
9101.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 9101.T:
cost_of_equity (7.05%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.75) + 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.