9101.T
Nippon Yusen KK
Price:  
5,167 
JPY
Volume:  
1,568,900
Japan | Marine

9101.T WACC - Weighted Average Cost of Capital

The WACC of Nippon Yusen KK (9101.T) is 6.3%.

The Cost of Equity of Nippon Yusen KK (9101.T) is 7.05%.
The Cost of Debt of Nippon Yusen KK (9101.T) is 4.25%.

RangeSelected
Cost of equity6.0% - 8.1%7.05%
Tax rate5.5% - 9.0%7.25%
Cost of debt4.0% - 4.5%4.25%
WACC5.4% - 7.1%6.3%
WACC

9101.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.750.8
Additional risk adjustments0.0%0.5%
Cost of equity6.0%8.1%
Tax rate5.5%9.0%
Debt/Equity ratio
0.330.33
Cost of debt4.0%4.5%
After-tax WACC5.4%7.1%
Selected WACC6.3%

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.