Sophia Holdings Co (TSE:6942) Effective Interest Rate on Debt %: 1.20% (As of Mar. 2026)

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TSE:6942 Sophia Holdings Co Ltd TSE:6942
60 GF Score
Price 円1,372.00
GF Value 円1,108.23
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Sophia Holdings Co Effective Interest Rate on Debt %?

Sophia Holdings Co TSE:6942 -0.58% 60 Effective Interest Rate on Debt % is 1.20% as of Mar. 2026. GuruFocus rates TSE:6942 with a GF Score™ of 60/100 and a GF Value™ of 円1,108.23 (Modestly Overvalued). The stock has 6 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. Sophia Holdings Co's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was 円23 Mil. Sophia Holdings Co's average total debt for the quarter that ended in Mar. 2026 was 円1,932 Mil. Therefore, Sophia Holdings Co's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 1.20%.


Sophia Holdings Co  (TSE:6942) Effective Interest Rate on Debt % Explanation

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


Sophia Holdings Co Effective Interest Rate on Debt % Related Terms


Sophia Holdings Co Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Sophia Holdings Co'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.

Sophia Holdings Co Effective Interest Rate on Debt % Chart

Sophia Holdings Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.66 0.57 0.26 0.99 1.06

Sophia Holdings Co Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 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 0.00 1.15 1.17 1.20 1.20

TSE:6942 vs IBM, ACN, FISV: Effective Interest Rate on Debt % Comparison

For the Information Technology Services subindustry, Sophia Holdings Co'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.


Sophia Holdings Co Effective Interest Rate on Debt % vs Software Industry

For the Software industry and Technology sector, Sophia Holdings Co's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Sophia Holdings Co's Effective Interest Rate on Debt % falls into.


TSE:6942
60GF Score
Sophia Holdings Co Ltd TSE:6942
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Sophia Holdings Co Effective Interest Rate on Debt % Calculation

Sophia Holdings Co's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Mar. 2025 )+Total Debt  (A: Mar. 2026 ))/ count )
=-1  *  -23.332/( (2314.466+2091.046)/ 2 )
=-1  *  -23.332/2202.756
=1.06 %

where

Total Debt  (A: Mar. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1428.385 + 886.081
=2314.466

Total Debt  (A: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1483.695 + 607.351
=2091.046

Sophia Holdings Co'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  *  -23.108/( (1773.584+2091.046)/ 2 )
=-1  *  -23.108/1932.315
=1.20 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1207.878 + 565.706
=1773.584

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1483.695 + 607.351
=2091.046

* 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 1.20% mean?
Sophia Holdings Co (TSE:6942) has a Effective Interest Rate on Debt % of 1.20% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Sophia Holdings Co and its competitors.
Is Sophia Holdings Co's Effective Interest Rate on Debt % too high?
Sophia Holdings Co's current Effective Interest Rate on Debt % is 1.20%. Overall, Sophia Holdings Co has a GF Score™ of 60/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sophia Holdings Co's Effective Interest Rate on Debt % compare to IBM and ACN?
Sophia Holdings Co's Effective Interest Rate on Debt % of 1.20% can be compared against companies in the Software 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 Software company?
A good Effective Interest Rate on Debt % depends on the Software 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 Sophia Holdings Co and its competitors. Sophia Holdings Co's current Effective Interest Rate on Debt % is 1.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sophia Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Sophia Holdings Co (TSE:6942) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,108.23, compared to a current price of 円1,372.00 — trading 23.8% above its estimated fair value. The current Effective Interest Rate on Debt % is 1.20%. Sophia Holdings Co's overall GF Score™ is 60/100 with 6 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 Sophia Holdings Co (TSE:6942), the current Effective Interest Rate on Debt % is 1.20% 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 Sophia Holdings Co (TSE:6942) Overvalued in 2026?

Based on GuruFocus' analysis, Sophia Holdings Co stock appears to be overvalued. The current stock price of 円1,372.00 is trading 23.8% above its estimated GF Value™ of 円1,108.23. GuruFocus considers Sophia Holdings Co to be Modestly Overvalued.

Key valuation signals for TSE:6942:

  • Effective Interest Rate on Debt %: 1.20%
  • GF Value™: 円1,108.23 vs. price of 円1,372.00 (23.8% above fair value)
  • GF Score™: 60/100 with 6 warning signs

No single metric tells the full story. See the TSE:6942 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sophia Holdings Co Business Description

Address 5F Kyoritsu Shin-Yokohama Building, 2-15-12 Shin-Yokohama, Kohoku-ku, Yokohama, Kanagawa Prefecture, Tokyo, JPN, 222-0033
Sophia Holdings Co Ltd is a Japan-based holding company. Through its subsidiaries, the company is engaged in the planning, design, development, business contracting and consultation of web services. It offers solutions across data center, hardware, software, contents and business categories. The group is also involved in the communication, healthcare, real estate, security and hosting businesses.
60GF Score

Get the complete analysis for TSE:6942

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

円1,372.00
Price
円1,108.23
GF Value