NISA.TA WACC - Weighted Average Cost of Capital

The WACC of Nissan Medical Industries Ltd (NISA.TA) is 7.9%.

The Cost of Equity of Nissan Medical Industries Ltd (NISA.TA) is 12.00%.

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

	Range	Selected
Cost of equity	10.50% - 13.50%	12.00%
Tax rate	12.90% - 16.90%	14.90%
Cost of debt	5.60% - 8.40%	7.00%
WACC	6.7% - 9.2%	7.9%

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	0.93	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	13.50%

Tax rate	12.90%	16.90%
Debt/Equity ratio	2.02	2.02
Cost of debt	5.60%	8.40%

After-tax WACC	6.7%	9.2%


Selected WACC	7.9%

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 (12.00%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.93) + 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.