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ORIX Corporation American Depositary Shares (each representing One (1) Share of Common Stock) (IX) — WACC Analysis

WACC Breakdown

ORIX Corporation American Depositary Shares (each representing One (1) Share of Common Stock) (IX) has a weighted average cost of capital (WACC) of 5.5%. The cost of equity is 8.7%, derived from a beta of 0.74 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.5%. The capital structure is 49.2% equity and 50.8% debt.

Interpretation

A WACC of 5.5% suggests that the market views ORIX Corporation American Depositary Shares (each representing One (1) Share of Common Stock) as relatively low-risk, with a lower cost of financing.

Investors can compare IX's WACC of 5.5% against industry peers to gauge its relative financing costs. A beta of 0.74 reflects the stock's volatility relative to the broader market.

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VALUATION

IX WACC: 5.55% for ORIX Corporation American Depositary Shares (each representing One (1) Share of Common Stock)

Current inputs imply a 8.72% cost of equity and a 3.14% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

ORIX Corporation American Depositary Shares (each representing One (1) Share of Common Stock) Common Stock (IX) WACC Results
Weighted Average Cost of Capital
5.55%
Cost of Equity
8.72%
Risk-Free Rate5.22%
Beta0.74
Market Risk Premium4.23%
Cost of Debt
2.48%
Pre-Tax Cost of Debt3.14%
Tax Rate21.00%
Tax Shield0.66%
Capital Structure
Equity: 49.18%($39.67B)
Debt: 50.82%($40.99B)
Equity Component
4.29%
49.18% × 8.72%
Debt Component
1.26%
50.82% × 2.48%

ORIX Corporation American Depositary Shares (each representing One (1) Share of Common Stock) (IX) WACC in context

ORIX Corporation American Depositary Shares (each representing One (1) Share of Common Stock) (IX) currently screens with an estimated WACC of 5.55%. That blends a 8.72% cost of equity, a 3.14% pre-tax cost of debt, and a 49.18% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What IX WACC implies

A 5.55% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates IX

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.74 and equity accounts for 49.18% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.