Fast Retailing CoFRCOF +2.25%91 WACC % is 8.09% as of Jun. 24, 2026, which is 8% above its 10-year median of 7.51. GuruFocus rates FRCOF with a GF Score™ of 91/100 and a GF Value™ of $339.36 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,143 Retail - Cyclical companies, Fast Retailing Co ranks worse than 66.75% on this metric.
As of today (2026-06-24), Fast Retailing Co's weighted average cost of capital is 8.09%%. Fast Retailing Co's ROIC % is 25.95% (calculated using TTM income statement data).
Fast Retailing 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.
Fast Retailing Co (OTCPK:FRCOF) 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, Fast Retailing Co's weighted average cost of capital is 8.09%%. Fast Retailing Co's ROIC % is 25.95% (calculated using TTM income statement data).
Fast Retailing 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
Fast Retailing Co WACC % Historical Data
* Premium members only.
The historical data trend for Fast Retailing 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 Apparel Retail subindustry, Fast Retailing 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.
Fast Retailing Co WACC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Fast Retailing Co's WACC % distribution charts can be found below:
* The bar in red indicates where Fast Retailing 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, Fast Retailing Co's market capitalization (E) is $159558.215 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, Fast Retailing Co's latest one-year quarterly average Book Value of Debt (D) is $3427.1782 Mil.
a) weight of equity = E / (E + D) = 159558.215 / (159558.215 + 3427.1782) = 0.979
b) weight of debt = D / (E + D) = 3427.1782 / (159558.215 + 3427.1782) = 0.021
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. Fast Retailing Co's beta is 0.9288.
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% + 0.9288 * 6% = 8.2228%
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, Fast Retailing Co's interest expense (positive number) was $90.172 Mil. Its total Book Value of Debt (D) is $3427.1782 Mil.
Cost of Debt = 90.172 / 3427.1782 = 2.6311%.
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 = 1344.147 / 4728.424 = 28.43%.
Fast Retailing 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)
=
0.979
*
8.2228%
+
0.021
*
2.6311%
*
(1 - 28.43%)
=
8.09%
* 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.
Fast Retailing Co (FRCOF) has a WACC % of 8.09% as of Jun. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Fast Retailing Co and its competitors. This is near median its historical median of 7.51. Over the past decade, Fast Retailing Co's WACC % has ranged from 6.76 to 9.59. According to the industry distribution chart, Fast Retailing Co ranks #763 out of 1143 companies in the Retail - Cyclical industry, placing it in the top 66.8%.
Is Fast Retailing Co's WACC % too high?
Fast Retailing Co's current WACC % of 8.09% is near median its 10-year median of 7.51. Over the past 10 years, this metric has ranged from a low of 6.76 to a high of 9.59. The Retail - Cyclical industry median WACC % is 7.58. Fast Retailing Co's value of 8.09% is 6.7% above this industry median. Based on the distribution chart, Fast Retailing Co ranks #763 out of 1143 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Fast Retailing Co has a GF Score™ of 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fast Retailing Co's WACC % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Fast Retailing Co ranks #763 out of 1143 companies for WACC %. This places Fast Retailing Co in the lower half of its industry. The industry median WACC % is 7.58. Fast Retailing Co's value of 8.09% is 6.7% above this benchmark. Historically, Fast Retailing Co's own WACC % has ranged from 6.76 to 9.59 over the past decade. While the company's 10-year median is 7.51 vs. the industry median of 7.58, Fast Retailing Co has consistently been above 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 Retail - Cyclical company?
The median WACC % among Retail - Cyclical companies is 7.58, based on 1,143 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. Fast Retailing Co's current WACC % of 8.09% is 6.7% above 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 Fast Retailing Co and its competitors. For the Retail - Cyclical industry, the median WACC % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fast Retailing Co's current WACC % is 8.09%, which is near median its own 10-year median of 7.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fast Retailing Co stock overvalued right now?
Based on GuruFocus' analysis, Fast Retailing Co (FRCOF) is currently considered Significantly Overvalued. The stock's GF Value™ is $339.36, compared to a current price of $517.31 — trading 52.4% above its estimated fair value. The current WACC % is 8.09%, which is near median its 10-year median of 7.51 and 6.7% above the Retail - Cyclical industry median of 7.58. Fast Retailing Co's overall GF Score™ is 91/100 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 Fast Retailing Co (FRCOF), the current WACC % is 8.09% as of Jun. 24, 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 Fast Retailing Co (FRCOF) Overvalued in 2026?
Based on GuruFocus' analysis, Fast Retailing Co stock appears to be overvalued.
The current stock price of $517.31 is trading 52.4% above its estimated GF Value™ of $339.36.
GuruFocus considers Fast Retailing Co to be Significantly Overvalued.
Key valuation signals for FRCOF:
WACC %: 8.09% (near median its 10-year median of 7.51)
GF Value™: $339.36 vs. price of $517.31 (52.4% above fair value)
Industry Position: 6.7% above the Retail - Cyclical median (#763 of 1143)
No single metric tells the full story. See the FRCOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fast Retailing is Japan's largest apparel company. It operates casualwear retail chain Uniqlo, known for its high-quality functional apparel at reasonable prices. Fast Retailing is in charge of product design and sales and outsources almost all of its production to factories in places including China, Vietnam, Bangladesh, Indonesia, and India. It is ranked the second-largest apparel company by sales globally in 2024 per Euromonitor, thanks to the expansion of Uniqlo International. As of February 2025, it ran 3,616 stores globally. Other brands in its portfolio include GU and acquired brands like Theory, Comptoir des Cotonniers, and Princesse tam.tam. The Yanai family owned a 40.86% stake in the firm as of July 2025.
91GF Score
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