Citizen Watch CoFRA:CTZ -1.45%66 WACC % is 7.18% as of Jun. 29, 2026, which is 35% above its 10-year median of 5.32. GuruFocus rates FRA:CTZ with a GF Score™ of 66/100 and a GF Value™ of €6.24 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,082 Manufacturing - Apparel & Accessories companies, Citizen Watch Co ranks better than 59.89% on this metric.
As of today (2026-06-29), Citizen Watch Co's weighted average cost of capital is 7.18%%. Citizen Watch Co's ROIC % is 8.35% (calculated using TTM income statement data).
Citizen Watch Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
Citizen Watch Co (FRA:CTZ) 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, Citizen Watch Co's weighted average cost of capital is 7.18%%. Citizen Watch Co's ROIC % is 8.35% (calculated using TTM income statement data).
Citizen Watch Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Related Terms
Citizen Watch Co WACC % Historical Data
* Premium members only.
The historical data trend for Citizen Watch Co's WACC % 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.
For the Footwear & Accessories subindustry, Citizen Watch 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.
Citizen Watch Co WACC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Citizen Watch Co's WACC % distribution charts can be found below:
* The bar in red indicates where Citizen Watch 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, Citizen Watch Co's market capitalization (E) is €3332.617 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 Mar. 2026, Citizen Watch Co's latest one-year quarterly average Book Value of Debt (D) is €383.5924 Mil.
a) weight of equity = E / (E + D) = 3332.617 / (3332.617 + 383.5924) = 0.8968
b) weight of debt = D / (E + D) = 383.5924 / (3332.617 + 383.5924) = 0.1032
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. Citizen Watch Co's beta is 0.8804.
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% + 0.8804 * 6% = 7.9324%
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 Mar. 2026, Citizen Watch Co's interest expense (positive number) was €2.756 Mil. Its total Book Value of Debt (D) is €383.5924 Mil.
Cost of Debt = 2.756 / 383.5924 = 0.7185%.
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 = 28.742 / 204.925 = 14.03%.
Citizen Watch Co's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.8968
*
7.9324%
+
0.1032
*
0.7185%
*
(1 - 14.03%)
=
7.18%
* 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.
Citizen Watch Co (FRA:CTZ) has a WACC % of 7.18% as of Jun. 29, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Citizen Watch Co and its competitors. This is 35% above median its historical median of 5.32. Over the past decade, Citizen Watch Co's WACC % has ranged from 2.30 to 6.90. According to the industry distribution chart, Citizen Watch Co ranks #434 out of 1082 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 40.1%.
Is Citizen Watch Co's WACC % too high?
Citizen Watch Co's current WACC % of 7.18% is 35% above median its 10-year median of 5.32. Over the past 10 years, this metric has ranged from a low of 2.30 to a high of 6.90. The Manufacturing - Apparel & Accessories industry median WACC % is 8.41. Citizen Watch Co's value of 7.18% is 14.6% below this industry median. Based on the distribution chart, Citizen Watch Co ranks #434 out of 1082 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Citizen Watch Co has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Citizen Watch Co's WACC % compare to NKE and DECK?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Citizen Watch Co ranks #434 out of 1082 companies for WACC %. This puts Citizen Watch Co in the upper half of its industry. The industry median WACC % is 8.41. Citizen Watch Co's value of 7.18% is 14.6% below this benchmark. Historically, Citizen Watch Co's own WACC % has ranged from 2.30 to 6.90 over the past decade. While the company's 10-year median is 5.32 vs. the industry median of 8.41, Citizen Watch 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 Manufacturing - Apparel & Accessories company?
The median WACC % among Manufacturing - Apparel & Accessories companies is 8.41, based on 1,082 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. Citizen Watch Co's current WACC % of 7.18% is 14.6% 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 Citizen Watch Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median WACC % is 8.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Citizen Watch Co's current WACC % is 7.18%, which is 35% above median its own 10-year median of 5.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Citizen Watch Co stock overvalued right now?
Based on GuruFocus' analysis, Citizen Watch Co (FRA:CTZ) is currently considered Significantly Overvalued. The stock's GF Value™ is €6.24, compared to a current price of €13.60 — trading 117.9% above its estimated fair value. The current WACC % is 7.18%, which is 35% above median its 10-year median of 5.32 and 14.6% below the Manufacturing - Apparel & Accessories industry median of 8.41. Citizen Watch Co's overall GF Score™ is 66/100 with 5 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 Citizen Watch Co (FRA:CTZ), the current WACC % is 7.18% as of Jun. 29, 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 Citizen Watch Co (FRA:CTZ) Overvalued in 2026?
Based on GuruFocus' analysis, Citizen Watch Co stock appears to be overvalued.
The current stock price of €13.60 is trading 117.9% above its estimated GF Value™ of €6.24.
GuruFocus considers Citizen Watch Co to be Significantly Overvalued.
Key valuation signals for FRA:CTZ:
WACC %: 7.18% (35% above median its 10-year median of 5.32)
GF Value™: €6.24 vs. price of €13.60 (117.9% above fair value)
Industry Position: 14.6% below the Manufacturing - Apparel & Accessories median (#434 of 1082)
No single metric tells the full story. See the FRA:CTZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Citizen Watch Co Ltd is a company whose main business is to manufacture and sell watches, machine tools, electronic devices, and electronic products. The Company has four reportable segments which includes Watches Business, Machine Tools Business, Device Business, and Electronic Equipment and Other Business. It generates majority of the revenue from Watches Business segment.
66GF Score
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