JAPAF (Japan Tobacco) Effective Interest Rate on Debt %: 7.86% (As of Mar. 2026)


JAPAF Japan Tobacco Inc JAPAF
75 GF Score
Price $37.50
GF Value $32.94
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Japan Tobacco Effective Interest Rate on Debt %?

Japan Tobacco JAPAF 75 Effective Interest Rate on Debt % is 7.86% as of Mar. 2026. GuruFocus rates JAPAF with a GF Score™ of 75/100 and a GF Value™ of $32.94 (Modestly Overvalued). The stock has 7 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Japan Tobacco's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was $863 Mil. Japan Tobacco's average total debt for the quarter that ended in Mar. 2026 was $10,985 Mil. Therefore, Japan Tobacco's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 7.86%.


Japan Tobacco  (OTCPK:JAPAF) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Japan Tobacco Effective Interest Rate on Debt % Related Terms


Japan Tobacco Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Japan Tobacco's Effective Interest Rate on Debt % can be seen below:

* 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.

Japan Tobacco Effective Interest Rate on Debt % Chart

Japan Tobacco Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.63 8.92 8.80 10.78 11.38

Japan Tobacco Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.61 9.65 8.39 19.31 7.86

JAPAF vs PM, MO, TPB: Effective Interest Rate on Debt % Comparison

For the Tobacco subindustry, Japan Tobacco's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.


Japan Tobacco Effective Interest Rate on Debt % vs Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Japan Tobacco's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Japan Tobacco's Effective Interest Rate on Debt % falls into.


JAPAF
75GF Score
Japan Tobacco Inc JAPAF
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Japan Tobacco Effective Interest Rate on Debt % Calculation

Japan Tobacco's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -1251.926/( (11226.447+10766.687)/ 2 )
=-1  *  -1251.926/10996.567
=11.38 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=10064.864 + 1161.583
=11226.447

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=10255.979 + 510.708
=10766.687

Japan Tobacco's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -863.132/( (10766.687+11202.418)/ 2 )
=-1  *  -863.132/10984.5525
=7.86 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=10255.979 + 510.708
=10766.687

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=9789.687 + 1412.731
=11202.418

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 7.86% mean?
Japan Tobacco (JAPAF) has a Effective Interest Rate on Debt % of 7.86% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Japan Tobacco and its competitors.
Is Japan Tobacco's Effective Interest Rate on Debt % too high?
Japan Tobacco's current Effective Interest Rate on Debt % is 7.86%. Overall, Japan Tobacco has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Tobacco's Effective Interest Rate on Debt % compare to PM and MO?
Japan Tobacco's Effective Interest Rate on Debt % of 7.86% can be compared against companies in the Tobacco Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Tobacco Products company?
A good Effective Interest Rate on Debt % depends on the Tobacco Products industry context. However, Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Japan Tobacco and its competitors. Japan Tobacco's current Effective Interest Rate on Debt % is 7.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Tobacco stock overvalued right now?
Based on GuruFocus' analysis, Japan Tobacco (JAPAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $32.94, compared to a current price of $37.50 — trading 13.8% above its estimated fair value. The current Effective Interest Rate on Debt % is 7.86%. Japan Tobacco's overall GF Score™ is 75/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Japan Tobacco (JAPAF), the current Effective Interest Rate on Debt % is 7.86% as of Mar. 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 Japan Tobacco (JAPAF) Overvalued in 2026?

Based on GuruFocus' analysis, Japan Tobacco stock appears to be overvalued. The current stock price of $37.50 is trading 13.8% above its estimated GF Value™ of $32.94. GuruFocus considers Japan Tobacco to be Modestly Overvalued.

Key valuation signals for JAPAF:

  • Effective Interest Rate on Debt %: 7.86%
  • GF Value™: $32.94 vs. price of $37.50 (13.8% above fair value)
  • GF Score™: 75/100 with 7 warning signs

No single metric tells the full story. See the JAPAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Japan Tobacco Business Description

Address 4-1-1 Toranomon, Minato-ku, Tokyo, JPN, 105-6927
Japan Tobacco primarily sells cigarettes and reduced-risk products, organized in three clusters consisting of Asia (which includes its home market and countries in Asia Pacific), Western Europe, and EMA (which includes Eastern Europe, the Middle East North Africa, Turkey, Americas, and duty-free). Its leading cigarette brands include Winston (non-US), Camel (non-US), Mevius, and LD. Its reduced-risk brands include Logic in vaping, Ploom in heated tobacco, and Nordic Spirit in nicotine pouches, though these generates less than 5% of tobacco sales.
75GF Score

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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$37.50
Price
$32.94
GF Value