9302.T
Mitsui Soko Holdings Co Ltd
Price:  
2,892.00 
JPY
Volume:  
380,700.00
Japan | Air Freight & Logistics
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9302.T WACC - Weighted Average Cost of Capital

The WACC of Mitsui Soko Holdings Co Ltd (9302.T) is 5.5%.

The Cost of Equity of Mitsui Soko Holdings Co Ltd (9302.T) is 6.45%.
The Cost of Debt of Mitsui Soko Holdings Co Ltd (9302.T) is 4.25%.

Range Selected
Cost of equity 5.40% - 7.50% 6.45%
Tax rate 31.20% - 32.60% 31.90%
Cost of debt 4.00% - 4.50% 4.25%
WACC 4.7% - 6.3% 5.5%
WACC

9302.T WACC calculation

Category Low High
Long-term bond rate 1.4% 1.9%
Equity market risk premium 6.1% 7.1%
Adjusted beta 0.66 0.72
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.40% 7.50%
Tax rate 31.20% 32.60%
Debt/Equity ratio 0.38 0.38
Cost of debt 4.00% 4.50%
After-tax WACC 4.7% 6.3%
Selected WACC 5.5%

9302.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 9302.T:

cost_of_equity (6.45%) = risk_free_rate (1.65%) + equity_risk_premium (6.60%) * adjusted_beta (0.66) + 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.