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As of today (2026-08-22), Nippon Kanryu Industry Co's weighted average cost of capital is 2.71%%. Nippon Kanryu Industry Co's ROIC % is 7.65% (calculated using TTM income statement data).
Nippon Kanryu Industry 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.
Nippon Kanryu Industry Co (FSE:1771) 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, Nippon Kanryu Industry Co's weighted average cost of capital is 2.71%%. Nippon Kanryu Industry Co's ROIC % is 7.65% (calculated using TTM income statement data).
Nippon Kanryu Industry 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.
* 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 Engineering & Construction subindustry, Nippon Kanryu Industry 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.
Nippon Kanryu Industry Co WACC % vs Construction Industry
For the Construction industry and Industrials sector, Nippon Kanryu Industry Co's WACC % distribution charts can be found below:
* The bar in red indicates where Nippon Kanryu Industry 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, Nippon Kanryu Industry Co's market capitalization (E) is 円10136.361 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 Jun. 2026, Nippon Kanryu Industry Co's latest one-year quarterly average Book Value of Debt (D) is 円288.3398 Mil.
a) weight of equity = E / (E + D) = 10136.361 / (10136.361 + 288.3398) = 0.9723
b) weight of debt = D / (E + D) = 288.3398 / (10136.361 + 288.3398) = 0.0277
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 2.67%. 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. Nippon Kanryu Industry Co's beta is 0.0145.
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 = 2.67% + 0.0145 * 6% = 2.757%
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 Jun. 2026, Nippon Kanryu Industry Co's interest expense (positive number) was 円5.232 Mil. Its total Book Value of Debt (D) is 円288.3398 Mil.
Cost of Debt = 5.232 / 288.3398 = 1.8145%.
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 = 336.662 / 739.511 = 45.52%.
* 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.
Nippon Kanryu Industry Co (FSE:1771) has a WACC % of 2.71% as of Aug. 22, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Nippon Kanryu Industry Co and its competitors. This is near median its historical median of 2.69. Over the past decade, Nippon Kanryu Industry Co's WACC % has ranged from 0.88 to 5.98. According to the industry distribution chart, Nippon Kanryu Industry Co ranks #174 out of 1812 companies in the Construction industry, placing it in the top 9.6%.
Is Nippon Kanryu Industry Co's WACC % too high?
Nippon Kanryu Industry Co's current WACC % of 2.71% is near median its 10-year median of 2.69. Over the past 10 years, this metric has ranged from a low of 0.88 to a high of 5.98. The Construction industry median WACC % is 7.68. Nippon Kanryu Industry Co's value of 2.71% is 64.7% below this industry median. Based on the distribution chart, Nippon Kanryu Industry Co ranks #174 out of 1812 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon Kanryu Industry Co has a GF Score™ of 58/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nippon Kanryu Industry Co's WACC % compare to PWR and FIX?
According to the Construction industry distribution chart, Nippon Kanryu Industry Co ranks #174 out of 1812 companies for WACC %. This places Nippon Kanryu Industry Co in the top 10% of its industry — outperforming the majority of peers. The industry median WACC % is 7.68. Nippon Kanryu Industry Co's value of 2.71% is 64.7% below this benchmark. Historically, Nippon Kanryu Industry Co's own WACC % has ranged from 0.88 to 5.98 over the past decade. While the company's 10-year median is 2.69 vs. the industry median of 7.68, Nippon Kanryu Industry 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 Construction company?
The median WACC % among Construction companies is 7.68, based on 1,812 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. Nippon Kanryu Industry Co's current WACC % of 2.71% is 64.7% 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 Nippon Kanryu Industry Co and its competitors. For the Construction industry, the median WACC % is 7.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Kanryu Industry Co's current WACC % is 2.71%, which is near median its own 10-year median of 2.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Kanryu Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Nippon Kanryu Industry Co (FSE:1771) is currently considered Fairly Valued. The stock's GF Value™ is 円904.38, compared to a current price of 円936.00 — trading 3.5% above its estimated fair value. The current WACC % is 2.71%, which is near median its 10-year median of 2.69 and 64.7% below the Construction industry median of 7.68. Nippon Kanryu Industry Co's overall GF Score™ is 58/100 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 Nippon Kanryu Industry Co (FSE:1771), the current WACC % is 2.71% as of Aug. 22, 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 Nippon Kanryu Industry Co (FSE:1771) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Kanryu Industry Co stock appears to be overvalued.
The current stock price of 円936.00 is trading 3.5% above its estimated GF Value™ of 円904.38.
GuruFocus considers Nippon Kanryu Industry Co to be Fairly Valued.
Key valuation signals for FSE:1771:
WACC %: 2.71% (near median its 10-year median of 2.69)
GF Value™: 円904.38 vs. price of 円936.00 (3.5% above fair value)
Industry Position: 64.7% below the Construction median (#174 of 1812)
No single metric tells the full story. See the FSE:1771 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Kanryu Industry Co Ltd is engaged in the construction business which includes traffic safety facilities construction, legal construction, landscape construction, and other construction works. It has disaster prevention safety business which sales disaster prevention goods, industrial safety and health related products. It also has chemicals business consist production of insoluble sulfur, manufacture of environmental type natural soil herbs. The company has two reportable segments: Construction Business; and Disaster Prevention and Safety Business.
58GF Score
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