JAPAF (Japan Tobacco) 1-Year Sharpe Ratio: 0.83 (As of Jul. 15, 2026)

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Director of Data and Quant Analytics at GuruFocus
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Charlie Tian
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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

JAPAF Japan Tobacco Inc JAPAF
75 GF Score
Price $38.40
GF Value $32.95
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Japan Tobacco 1-Year Sharpe Ratio?

Japan Tobacco JAPAF 75 1-Year Sharpe Ratio is 0.83 as of Jul. 15, 2026. GuruFocus rates JAPAF with a GF Score™ of 75/100 and a GF Value™ of $32.95 (Modestly Overvalued). The stock has 7 warning signs investors should review.

The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-15), Japan Tobacco's 1-Year Sharpe Ratio is 0.83.

Japan Tobacco  (OTCPK:JAPAF) 1-Year Sharpe Ratio Explanation

The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.

Japan Tobacco 1-Year Sharpe Ratio Related Terms

JAPAF vs PM, MO, TPB: 1-Year Sharpe Ratio Comparison

For the Tobacco subindustry, Japan Tobacco's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio vs Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Japan Tobacco's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Japan Tobacco's 1-Year Sharpe Ratio falls into.


JAPAF
75GF Score
Japan Tobacco Inc JAPAF
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Japan Tobacco 1-Year Sharpe Ratio Calculation

The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.

Frequently Asked Questions Learn more about 1-Year Sharpe Ratio →
What does a 1-Year Sharpe Ratio of 0.83 mean?
Japan Tobacco (JAPAF) has a 1-Year Sharpe Ratio of 0.83 as of Jul. 15, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Japan Tobacco and its competitors.
Is Japan Tobacco's 1-Year Sharpe Ratio too high?
Japan Tobacco's current 1-Year Sharpe Ratio is 0.83. 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 1-Year Sharpe Ratio compare to PM and MO?
Japan Tobacco's 1-Year Sharpe Ratio of 0.83 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 1-Year Sharpe Ratio for a Tobacco Products company?
A good 1-Year Sharpe Ratio depends on the Tobacco Products industry context. However, 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Japan Tobacco and its competitors. Japan Tobacco's current 1-Year Sharpe Ratio is 0.83. 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 $32.95, compared to a current price of $38.40 — trading 16.5% above its estimated fair value. The current 1-Year Sharpe Ratio is 0.83. 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 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Japan Tobacco (JAPAF), the current 1-Year Sharpe Ratio is 0.83 as of Jul. 15, 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 $38.40 is trading 16.5% above its estimated GF Value™ of $32.95. GuruFocus considers Japan Tobacco to be Modestly Overvalued.

Key valuation signals for JAPAF:

  • 1-Year Sharpe Ratio: 0.83
  • GF Value™: $32.95 vs. price of $38.40 (16.5% 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

Get the complete analysis for JAPAF

1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$38.40
Price
$32.95
GF Value