NISA.TA WACC - Weighted Average Cost of Capital

The WACC of Nissan Medical Industries Ltd (NISA.TA) is 8.8%.

The Cost of Equity of Nissan Medical Industries Ltd (NISA.TA) is 14.85%.

The Cost of Debt of Nissan Medical Industries Ltd (NISA.TA) is 7.00%.

	Range	Selected
Cost of equity	11.10% - 18.60%	14.85%
Tax rate	12.90% - 16.90%	14.90%
Cost of debt	5.60% - 8.40%	7.00%
WACC	6.9% - 10.8%	8.8%

WACC

NISA.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	1.02	1.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	18.60%

Tax rate	12.90%	16.90%
Debt/Equity ratio	2.06	2.06
Cost of debt	5.60%	8.40%

After-tax WACC	6.9%	10.8%


Selected WACC	8.8%

NISA.TA'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 NISA.TA:

cost_of_equity (14.85%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (1.02) + 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.