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Mitsubishi UFJ Financial Group, Inc. (MUFG) — WACC Analysis

WACC Breakdown

Mitsubishi UFJ Financial Group, Inc. (MUFG) has a weighted average cost of capital (WACC) of 12.0%. The cost of equity is 8.6%, derived from a beta of 0.79 and a risk-free rate of 5.0%. The after-tax cost of debt is 18.8%. The capital structure is 66.2% equity and 33.8% debt.

Interpretation

A WACC of 12.0% indicates that the market perceives Mitsubishi UFJ Financial Group, Inc. as higher-risk, requiring a greater return to compensate investors.

Investors can compare MUFG's WACC of 12.0% against industry peers to gauge its relative financing costs. A beta of 0.79 reflects the stock's volatility relative to the broader market.

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VALUATION

MUFG WACC: 12.05% for Mitsubishi UFJ Financial Group, Inc.

Current inputs imply a 8.60% cost of equity and a 23.82% 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

Mitsubishi UFJ Financial Group, Inc. Common Stock (MUFG) WACC Results
Weighted Average Cost of Capital
12.05%
Cost of Equity
8.60%
Risk-Free Rate4.96%
Beta0.79
Market Risk Premium4.23%
Cost of Debt
18.81%
Pre-Tax Cost of Debt23.82%
Tax Rate21.00%
Tax Shield5.00%
Capital Structure
Equity: 66.21%($268.90B)
Debt: 33.79%($137.21B)
Equity Component
5.69%
66.21% × 8.60%
Debt Component
6.36%
33.79% × 18.81%

Mitsubishi UFJ Financial Group, Inc. (MUFG) WACC in context

Mitsubishi UFJ Financial Group, Inc. (MUFG) currently screens with an estimated WACC of 12.05%. That blends a 8.60% cost of equity, a 23.82% pre-tax cost of debt, and a 66.21% 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 MUFG WACC implies

A 12.05% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates MUFG

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.79 and equity accounts for 66.21% 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.