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Mizuho Financial Group, Inc. American Depositary Shares (Each representing one-fifth of an Ordinary Share) (MFG) — WACC Analysis

WACC Breakdown

Mizuho Financial Group, Inc. American Depositary Shares (Each representing one-fifth of an Ordinary Share) (MFG) has a weighted average cost of capital (WACC) of 13.1%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 17.2%. The capital structure is 51.2% equity and 48.8% debt.

Interpretation

A WACC of 13.1% indicates that the market perceives Mizuho Financial Group, Inc. American Depositary Shares (Each representing one-fifth of an Ordinary Share) as higher-risk, requiring a greater return to compensate investors.

Investors can compare MFG's WACC of 13.1% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

MFG WACC: 13.10% for Mizuho Financial Group, Inc. American Depositary Shares (Each representing one-fifth of an Ordinary Share)

Current inputs imply a 9.19% cost of equity and a 21.77% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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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

Mizuho Financial Group, Inc. American Depositary Shares (Each representing one-fifth of an Ordinary Share) Common Stock (MFG) WACC Results
Weighted Average Cost of Capital
13.10%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
17.19%
Pre-Tax Cost of Debt21.77%
Tax Rate21.00%
Tax Shield4.57%
Capital Structure
Equity: 51.21%($137.13B)
Debt: 48.79%($130.65B)
Equity Component
4.71%
51.21% × 9.19%
Debt Component
8.39%
48.79% × 17.19%

Mizuho Financial Group, Inc. American Depositary Shares (Each representing one-fifth of an Ordinary Share) (MFG) WACC in context

Mizuho Financial Group, Inc. American Depositary Shares (Each representing one-fifth of an Ordinary Share) (MFG) currently screens with an estimated WACC of 13.10%. That blends a 9.19% cost of equity, a 21.77% pre-tax cost of debt, and a 51.21% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What MFG WACC implies

A 13.10% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates MFG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 51.21% 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.