9202.T WACC - Weighted Average Cost of Capital
The WACC of ANA Holdings Inc (9202.T) is 5.6%.
| Range | Selected | |
| Cost of equity | 6.3% - 9.4% | 7.85% |
| Tax rate | 21.5% - 22.1% | 21.8% |
| Cost of debt | 4.0% - 4.5% | 4.25% |
| WACC | 4.7% - 6.5% | 5.6% |
| Category | Low | High |
| Long-term bond rate | 1.4% | 1.9% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.8 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 9.4% |
| Tax rate | 21.5% | 22.1% |
| Debt/Equity ratio | 0.96 | 0.96 |
| Cost of debt | 4.0% | 4.5% |
| After-tax WACC | 4.7% | 6.5% |
| Selected WACC | 5.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 9202.T | ANA Holdings Inc | 0.96 | 0.44 | 0.25 |
| 600029.SS | China Southern Airlines Co Ltd | 2 | 0.89 | 0.35 |
| 600115.SS | China Eastern Airlines Corp Ltd | 2.22 | 0.86 | 0.31 |
| 600221.SS | Hainan Airlines Holding Co Ltd | 1.94 | 1.77 | 0.7 |
| 601111.SS | Air China Ltd | 1.7 | 1.01 | 0.43 |
| 9201.T | Japan Airlines Co Ltd | 0.69 | 0.71 | 0.46 |
| 9206.T | Star Flyer Inc | 0.38 | 0.25 | 0.19 |
| HVN.VN | Vietnam Airlines JSC | 0.24 | 1.17 | 0.99 |
| INDIGO.NS | Interglobe Aviation Ltd | 0.23 | 1.36 | 1.15 |
| QAN.AX | Qantas Airways Ltd | 0.41 | 1.13 | 0.86 |
| Low | High | |
| Unlevered beta | 0.4 | 0.56 |
| Relevered beta | 0.7 | 0.97 |
| Adjusted relevered beta | 0.8 | 0.98 |
9202.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 9202.T:
cost_of_equity (7.85%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.8) + 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.