AEON Financial Service CoAEOJF 73 WACC % is 3.16% as of Jun. 30, 2026, which is 0% above its 10-year median of 3.15. GuruFocus rates AEOJF with a GF Score™ of 73/100 and a GF Value™ of $9.49. The stock has 2 warning signs investors should review. Among 554 Credit Services companies, AEON Financial Service Co ranks better than 77.98% on this metric.
As of today (2026-06-30), AEON Financial Service Co's weighted average cost of capital is 3.16%%. AEON Financial Service Co's ROIC % is 0.00% (calculated using TTM income statement data).
AEON Financial Service Co 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.
AEON Financial Service Co (OTCPK:AEOJF) 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, AEON Financial Service Co's weighted average cost of capital is 3.16%%. AEON Financial Service Co's ROIC % is 0.00% (calculated using TTM income statement data).
AEON Financial Service Co 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.
* 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 Credit Services subindustry, AEON Financial Service Co'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.
AEON Financial Service Co WACC % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, AEON Financial Service Co's WACC % distribution charts can be found below:
* The bar in red indicates where AEON Financial Service Co'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, AEON Financial Service Co's market capitalization (E) is $1960.946 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 Feb. 2026, AEON Financial Service Co's latest one-year quarterly average Book Value of Debt (D) is $8731.794 Mil.
a) weight of equity = E / (E + D) = 1960.946 / (1960.946 + 8731.794) = 0.1834
b) weight of debt = D / (E + D) = 8731.794 / (1960.946 + 8731.794) = 0.8166
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. AEON Financial Service Co's beta is -0.1887.
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% + -0.1887 * 6% = 1.5178%
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 Feb. 2026, AEON Financial Service Co's interest expense (positive number) was $408.268 Mil. Its total Book Value of Debt (D) is $8731.794 Mil.
Cost of Debt = 408.268 / 8731.794 = 4.6756%.
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 = 78.523 / 321.718 = 24.41%.
* 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.
AEON Financial Service Co (AEOJF) has a WACC % of 3.16% as of Jun. 30, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on AEON Financial Service Co and its competitors. This is near median its historical median of 3.15. Over the past decade, AEON Financial Service Co's WACC % has ranged from 1.93 to 4.08. According to the industry distribution chart, AEON Financial Service Co ranks #122 out of 554 companies in the Credit Services industry, placing it in the top 22%.
Is AEON Financial Service Co's WACC % too high?
AEON Financial Service Co's current WACC % of 3.16% is near median its 10-year median of 3.15. Over the past 10 years, this metric has ranged from a low of 1.93 to a high of 4.08. The Credit Services industry median WACC % is 7.26. AEON Financial Service Co's value of 3.16% is 56.4% below this industry median. Based on the distribution chart, AEON Financial Service Co ranks #122 out of 554 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, AEON Financial Service Co has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does AEON Financial Service Co's WACC % compare to V and MA?
According to the Credit Services industry distribution chart, AEON Financial Service Co ranks #122 out of 554 companies for WACC %. This places AEON Financial Service Co in the top 22% of its industry — outperforming the majority of peers. The industry median WACC % is 7.26. AEON Financial Service Co's value of 3.16% is 56.4% below this benchmark. Historically, AEON Financial Service Co's own WACC % has ranged from 1.93 to 4.08 over the past decade. While the company's 10-year median is 3.15 vs. the industry median of 7.26, AEON Financial Service Co 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 a Credit Services company?
The median WACC % among Credit Services companies is 7.26, based on 554 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. AEON Financial Service Co's current WACC % of 3.16% is 56.4% 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 AEON Financial Service Co and its competitors. For the Credit Services industry, the median WACC % is 7.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AEON Financial Service Co's current WACC % is 3.16%, which is near median its own 10-year median of 3.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AEON Financial Service Co stock overvalued right now?
AEON Financial Service Co (AEOJF) has a current WACC % of 3.16%. The stock's GF Value™ is $9.49, compared to a current price of $8.57 — trading 9.7% below its estimated fair value. The current WACC % is 3.16%, which is near median its 10-year median of 3.15 and 56.4% below the Credit Services industry median of 7.26. AEON Financial Service Co's overall GF Score™ is 73/100 with 2 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 AEON Financial Service Co (AEOJF), the current WACC % is 3.16% as of Jun. 30, 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 AEON Financial Service Co (AEOJF) Overvalued in 2026?
Based on GuruFocus' analysis, AEON Financial Service Co stock appears to be undervalued.
The current stock price of $8.57 is trading 9.7% below its estimated GF Value™ of $9.49.
Key valuation signals for AEOJF:
WACC %: 3.16% (near median its 10-year median of 3.15)
GF Value™: $9.49 vs. price of $8.57 (9.7% below fair value)
Industry Position: 56.4% below the Credit Services median (#122 of 554)
No single metric tells the full story. See the AEOJF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AEON Financial Service Co Ltd is a comprehensive financial group consisting of a bank holding company and its subsidiaries, which grew out of Aeon Group's retail operations. It currently operates a network of hundreds of sales bases throughout Asia, particularly in Japan, China, Thailand, and Malaysia. The bank provides various financial services, payment services, housing loans, deposits, installment sales, and overseas services to customers through points of sale closely linked to community lifestyles. These include shopping centers and retail malls, convenience stores, and specialty stores, among others. Net fee and commission income is the company's main source of net revenue.
73GF Score
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