9115.T WACC - Weighted Average Cost of Capital
The WACC of Meiji Shipping Co Ltd (9115.T) is 5.2%.
| Range | Selected | |
| Cost of equity | 10.4% - 18.7% | 14.55% |
| Tax rate | 10.1% - 16.8% | 13.45% |
| Cost of debt | 4.0% - 5.0% | 4.5% |
| WACC | 4.5% - 6.0% | 5.2% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 1.47 | 2.28 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.4% | 18.7% |
| Tax rate | 10.1% | 16.8% |
| Debt/Equity ratio | 6.87 | 6.87 |
| Cost of debt | 4.0% | 5.0% |
| After-tax WACC | 4.5% | 6.0% |
| Selected WACC | 5.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9115.T | Meiji Shipping Co Ltd | 6.87 | 0.74 | 0.11 |
| 9171.T | Kuribayashi Steamship Co Ltd | 2.2 | 1.46 | 0.51 |
| 9173.T | Tokai Kisen Co Ltd | 1.84 | 0.05 | 0.02 |
| 9179.T | Kawasaki Kinkai Kisen Kaisha Ltd | 0.51 | 0.85 | 0.59 |
| 9193.T | Tokyo Kisen Co Ltd | 0.32 | 0.71 | 0.56 |
| 9311.T | Asagami Corp | 1.24 | 0.22 | 0.11 |
| 9362.T | Hyoki Kaiun Kaisha Ltd | 1.15 | 0.56 | 0.28 |
| 9380.T | Azuma Shipping Co Ltd | 1.16 | 0.38 | 0.19 |
| 9384.T | Naigai Trans Line Ltd | 0.01 | 0.37 | 0.37 |
| 9386.T | Nippon Concept Corp | 0.18 | 0.76 | 0.66 |
| Low | High | |
| Unlevered beta | 0.25 | 0.42 |
| Relevered beta | 1.7 | 2.91 |
| Adjusted relevered beta | 1.47 | 2.28 |
9115.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 9115.T:
cost_of_equity (14.55%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (1.47) + 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.