Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-06-25), TOWA Pharmaceutical Co's Beta is 0.1267.
TOWA Pharmaceutical Co (TSE:4553) Beta Explanation
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
* 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 Drug Manufacturers - Specialty & Generic subindustry, TOWA Pharmaceutical Co's Beta, along with its competitors' market caps and Beta 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.
TOWA Pharmaceutical Co Beta vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, TOWA Pharmaceutical Co's Beta distribution charts can be found below:
* The bar in red indicates where TOWA Pharmaceutical Co's Beta falls into.
Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.
TOWA Pharmaceutical Co (TSE:4553) has a Beta of 0.1267 as of Jun. 25, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for TOWA Pharmaceutical Co and its competitors.
Is TOWA Pharmaceutical Co's Beta too high?
TOWA Pharmaceutical Co's current Beta is 0.1267. Overall, TOWA Pharmaceutical Co has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TOWA Pharmaceutical Co's Beta compare to ZTS?
TOWA Pharmaceutical Co's Beta of 0.1267 can be compared against companies in the Drug Manufacturers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beta for a Drug Manufacturers company?
A good Beta depends on the Drug Manufacturers industry context. However, Beta should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beta mean?
A high Beta can signal that a stock is expensive relative to its fundamentals. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for TOWA Pharmaceutical Co and its competitors. TOWA Pharmaceutical Co's current Beta is 0.1267. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TOWA Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, TOWA Pharmaceutical Co (TSE:4553) is currently considered Modestly Overvalued. The stock's GF Value™ is 円3,355.31, compared to a current price of 円3,845.00 — trading 14.6% above its estimated fair value. The current Beta is 0.1267. TOWA Pharmaceutical Co's overall GF Score™ is 85/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beta calculated?
Beta is calculated from a company's financial statements. For TOWA Pharmaceutical Co (TSE:4553), the current Beta is 0.1267 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 TOWA Pharmaceutical Co (TSE:4553) Overvalued in 2026?
Based on GuruFocus' analysis, TOWA Pharmaceutical Co stock appears to be overvalued.
The current stock price of 円3,845.00 is trading 14.6% above its estimated GF Value™ of 円3,355.31.
GuruFocus considers TOWA Pharmaceutical Co to be Modestly Overvalued.
Key valuation signals for TSE:4553:
Beta: 0.1267
GF Value™: 円3,355.31 vs. price of 円3,845.00 (14.6% above fair value)
No single metric tells the full story. See the TSE:4553 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TOWA Pharmaceutical Co Ltd is a Japan based pharmaceutical company engaged in research and development, production, and marketing of generic drugs. It also provides drug consulting services for patients and their families and relatives. It organizes academic seminars for medical professionals and posts articles in journals. It participates in training for pharmacists. The company has three main plants in operation namely Osaka plant, Okayama plant, and Yamagata plant. Towa has offers more than 500 drugs to meet the diverse therapeutic requirements including lifestyle related diseases such as hypertension and diabetes, digestive system diseases, nervous system diseases and allergic diseases, vitamins and antibiotics.
85GF Score
Get the complete analysis for TSE:4553
Beta is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:4553 has been successfully added to your 
