As of today (2026-06-25), MS&AD Insurance Group Holdings's weighted average cost of capital is 4.92%%. MS&AD Insurance Group Holdings's ROIC % is 3.16% (calculated using TTM income statement data).
MS&AD Insurance Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
MS&AD Insurance Group Holdings (OTCPK:MSADF) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, MS&AD Insurance Group Holdings's weighted average cost of capital is 4.92%%. MS&AD Insurance Group Holdings's ROIC % is 3.16% (calculated using TTM income statement data).
MS&AD Insurance Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
MS&AD Insurance Group Holdings WACC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Property & Casualty subindustry, MS&AD Insurance Group Holdings's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MS&AD Insurance Group Holdings WACC % vs Insurance Industry
For the Insurance industry and Financial Services sector, MS&AD Insurance Group Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where MS&AD Insurance Group Holdings's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, MS&AD Insurance Group Holdings's market capitalization (E) is $38149.816 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, MS&AD Insurance Group Holdings's latest one-year quarterly average Book Value of Debt (D) is $4950.5076 Mil.
a) weight of equity = E / (E + D) = 38149.816 / (38149.816 + 4950.5076) = 0.8851
b) weight of debt = D / (E + D) = 4950.5076 / (38149.816 + 4950.5076) = 0.1149
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 2.65%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. MS&AD Insurance Group Holdings's beta is 0.4517.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 2.65% + 0.4517 * 6% = 5.3602%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, MS&AD Insurance Group Holdings's interest expense (positive number) was $101.939 Mil. Its total Book Value of Debt (D) is $4950.5076 Mil.
Cost of Debt = 101.939 / 4950.5076 = 2.0592%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 1732.677 / 7004.693 = 24.74%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MS&AD Insurance Group Holdings (MSADF) has a WACC % of 4.92% as of Jun. 25, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on MS&AD Insurance Group Holdings and its competitors. This is 20% above median its historical median of 4.09. Over the past decade, MS&AD Insurance Group Holdings' WACC % has ranged from 2.20 to 7.12. According to the industry distribution chart, MS&AD Insurance Group Holdings ranks #39 out of 516 companies in the Insurance industry, placing it in the top 7.6%.
Is MS&AD Insurance Group Holdings' WACC % too high?
MS&AD Insurance Group Holdings' current WACC % of 4.92% is 20% above median its 10-year median of 4.09. Over the past 10 years, this metric has ranged from a low of 2.20 to a high of 7.12. The Insurance industry median WACC % is 9.21. MS&AD Insurance Group Holdings' value of 4.92% is 46.6% below this industry median. Based on the distribution chart, MS&AD Insurance Group Holdings ranks #39 out of 516 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, MS&AD Insurance Group Holdings has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MS&AD Insurance Group Holdings' WACC % compare to CB and PGR?
According to the Insurance industry distribution chart, MS&AD Insurance Group Holdings ranks #39 out of 516 companies for WACC %. This places MS&AD Insurance Group Holdings in the top 8% of its industry — outperforming the majority of peers. The industry median WACC % is 9.21. MS&AD Insurance Group Holdings' value of 4.92% is 46.6% below this benchmark. Historically, MS&AD Insurance Group Holdings' own WACC % has ranged from 2.20 to 7.12 over the past decade. While the company's 10-year median is 4.09 vs. the industry median of 9.21, MS&AD Insurance Group Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for an Insurance company?
The median WACC % among Insurance companies is 9.21, based on 516 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MS&AD Insurance Group Holdings's current WACC % of 4.92% is 46.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on MS&AD Insurance Group Holdings and its competitors. For the Insurance industry, the median WACC % is 9.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MS&AD Insurance Group Holdings's current WACC % is 4.92%, which is 20% above median its own 10-year median of 4.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MS&AD Insurance Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, MS&AD Insurance Group Holdings (MSADF) is currently considered Modestly Overvalued. The stock's GF Value™ is $24.44, compared to a current price of $27.27 — trading 11.6% above its estimated fair value. The current WACC % is 4.92%, which is 20% above median its 10-year median of 4.09 and 46.6% below the Insurance industry median of 9.21. MS&AD Insurance Group Holdings' overall GF Score™ is 78/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For MS&AD Insurance Group Holdings (MSADF), the current WACC % is 4.92% as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is MS&AD Insurance Group Holdings (MSADF) Overvalued in 2026?
Based on GuruFocus' analysis, MS&AD Insurance Group Holdings stock appears to be overvalued.
The current stock price of $27.27 is trading 11.6% above its estimated GF Value™ of $24.44.
GuruFocus considers MS&AD Insurance Group Holdings to be Modestly Overvalued.
Key valuation signals for MSADF:
WACC %: 4.92% (20% above median its 10-year median of 4.09)
GF Value™: $24.44 vs. price of $27.27 (11.6% above fair value)
Industry Position: 46.6% below the Insurance median (#39 of 516)
No single metric tells the full story. See the MSADF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MS&AD Insurance Group Holdings Business Description
MS&AD is Japan's largest domestic property and casualty insurer by market share, trailing Tokio Marine HCC in global scale. Domestically, it maintains a solid second-tier life presence. Overseas, MS&AD holds a dominant, profitable retail footprint in the Association of Southeast Asian Nations and is aggressively pivoting to US specialty lines via a milestone investment in W.R. Berkley, supported by MS Amlin's successful turnaround in global specialty markets.Domestically, MS&AD leverages deep corporate ties with Mitsui and Sumitomo, alongside an exclusive Toyota partnership that provides unparalleled advantages in capturing auto insurance customers and building advanced telematics data funnels.
78GF Score
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