Skip to content

MEDIROM Healthcare Technologies Inc. American Depositary Share (MRM) — WACC Analysis

WACC Breakdown

MEDIROM Healthcare Technologies Inc. American Depositary Share (MRM) has a weighted average cost of capital (WACC) of 6.0%. The cost of equity is 8.9%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.2%. The capital structure is 48.1% equity and 51.9% debt.

Interpretation

A WACC of 6.0% suggests that the market views MEDIROM Healthcare Technologies Inc. American Depositary Share as relatively low-risk, with a lower cost of financing.

Investors can compare MRM's WACC of 6.0% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

MRM WACC: 5.96% for MEDIROM Healthcare Technologies Inc. American Depositary Share

Current inputs imply a 8.90% cost of equity and a 4.10% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

MEDIROM Healthcare Technologies Inc. American Depositary Share Common Stock (MRM) WACC Results
Weighted Average Cost of Capital
5.96%
Cost of Equity
8.90%
Risk-Free Rate4.67%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
3.24%
Pre-Tax Cost of Debt4.10%
Tax Rate21.00%
Tax Shield0.86%
Capital Structure
Equity: 48.14%($7.43M)
Debt: 51.86%($8.00M)
Equity Component
4.28%
48.14% × 8.90%
Debt Component
1.68%
51.86% × 3.24%

MEDIROM Healthcare Technologies Inc. American Depositary Share (MRM) WACC in context

MEDIROM Healthcare Technologies Inc. American Depositary Share (MRM) currently screens with an estimated WACC of 5.96%. That blends a 8.90% cost of equity, a 4.10% pre-tax cost of debt, and a 48.14% 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 MRM WACC implies

A 5.96% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates MRM

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 48.14% 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.