9104.T
Mitsui OSK Lines Ltd
Price:  
4,777 
JPY
Volume:  
2,224,700
Japan | Marine

9104.T WACC - Weighted Average Cost of Capital

The WACC of Mitsui OSK Lines Ltd (9104.T) is 6.2%.

The Cost of Equity of Mitsui OSK Lines Ltd (9104.T) is 8.5%.
The Cost of Debt of Mitsui OSK Lines Ltd (9104.T) is 4.25%.

RangeSelected
Cost of equity7.3% - 9.7%8.5%
Tax rate4.5% - 6.3%5.4%
Cost of debt4.0% - 4.5%4.25%
WACC5.5% - 6.9%6.2%
WACC

9104.T WACC calculation

CategoryLowHigh
Long-term bond rate1.4%1.9%
Equity market risk premium6.1%7.1%
Adjusted beta0.961.03
Additional risk adjustments0.0%0.5%
Cost of equity7.3%9.7%
Tax rate4.5%6.3%
Debt/Equity ratio
1.051.05
Cost of debt4.0%4.5%
After-tax WACC5.5%6.9%
Selected WACC6.2%

9104.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 9104.T:

cost_of_equity (8.50%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.96) + 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.