As of today (2026-06-26), Mitsubishi Chemical Group's weighted average cost of capital is 3.6%%. Mitsubishi Chemical Group's ROIC % is 0.00% (calculated using TTM income statement data).
Mitsubishi Chemical Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Mitsubishi Chemical Group (HAM:M3C) 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, Mitsubishi Chemical Group's weighted average cost of capital is 3.6%%. Mitsubishi Chemical Group's ROIC % is 0.00% (calculated using TTM income statement data).
Mitsubishi Chemical Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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 Specialty Chemicals subindustry, Mitsubishi Chemical Group'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.
Mitsubishi Chemical Group WACC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Mitsubishi Chemical Group's WACC % distribution charts can be found below:
* The bar in red indicates where Mitsubishi Chemical Group'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, Mitsubishi Chemical Group's market capitalization (E) is €8099.134 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, Mitsubishi Chemical Group's latest one-year quarterly average Book Value of Debt (D) is €11355.4914 Mil.
a) weight of equity = E / (E + D) = 8099.134 / (8099.134 + 11355.4914) = 0.4163
b) weight of debt = D / (E + D) = 11355.4914 / (8099.134 + 11355.4914) = 0.5837
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. Mitsubishi Chemical Group's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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% + 1 * 6% = 8.65%
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, Mitsubishi Chemical Group's interest expense (positive number) was €220.716 Mil. Its total Book Value of Debt (D) is €11355.4914 Mil.
Cost of Debt = 220.716 / 11355.4914 = 1.9437%.
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 = 103.827 / 37.757 = 274.99%, which is higher than 100%. Therefore it's set to 100%.
* 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.
Mitsubishi Chemical Group (HAM:M3C) has a WACC % of 3.6% as of Jun. 26, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Mitsubishi Chemical Group and its competitors. This is 33% above median its historical median of 2.70. Over the past decade, Mitsubishi Chemical Group's WACC % has ranged from 1.83 to 5.16. According to the industry distribution chart, Mitsubishi Chemical Group ranks #90 out of 1636 companies in the Chemicals industry, placing it in the top 5.5%.
Is Mitsubishi Chemical Group's WACC % too high?
Mitsubishi Chemical Group's current WACC % of 3.6% is 33% above median its 10-year median of 2.70. Over the past 10 years, this metric has ranged from a low of 1.83 to a high of 5.16. The Chemicals industry median WACC % is 9.21. Mitsubishi Chemical Group's value of 3.6% is 60.9% below this industry median. Based on the distribution chart, Mitsubishi Chemical Group ranks #90 out of 1636 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Mitsubishi Chemical Group has a GF Score™ of 61/100, reflecting its overall financial health beyond just this single metric.
How does Mitsubishi Chemical Group's WACC % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Mitsubishi Chemical Group ranks #90 out of 1636 companies for WACC %. This places Mitsubishi Chemical Group in the top 6% of its industry — outperforming the majority of peers. The industry median WACC % is 9.21. Mitsubishi Chemical Group's value of 3.6% is 60.9% below this benchmark. Historically, Mitsubishi Chemical Group's own WACC % has ranged from 1.83 to 5.16 over the past decade. While the company's 10-year median is 2.70 vs. the industry median of 9.21, Mitsubishi Chemical Group 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 Chemicals company?
The median WACC % among Chemicals companies is 9.21, based on 1,636 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. Mitsubishi Chemical Group's current WACC % of 3.6% is 60.9% 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 Mitsubishi Chemical Group and its competitors. For the Chemicals industry, the median WACC % is 9.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mitsubishi Chemical Group's current WACC % is 3.6%, which is 33% above median its own 10-year median of 2.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mitsubishi Chemical Group stock overvalued right now?
Mitsubishi Chemical Group (HAM:M3C) has a current WACC % of 3.6%. The stock's GF Value™ is €4.24, compared to a current price of €5.84 — trading 37.6% above its estimated fair value. The current WACC % is 3.6%, which is 33% above median its 10-year median of 2.70 and 60.9% below the Chemicals industry median of 9.21. Mitsubishi Chemical Group's overall GF Score™ is 61/100 with 11 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 Mitsubishi Chemical Group (HAM:M3C), the current WACC % is 3.6% as of Jun. 26, 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 Mitsubishi Chemical Group (HAM:M3C) Overvalued in 2026?
Based on GuruFocus' analysis, Mitsubishi Chemical Group stock appears to be overvalued.
The current stock price of €5.84 is trading 37.6% above its estimated GF Value™ of €4.24.
Key valuation signals for HAM:M3C:
WACC %: 3.6% (33% above median its 10-year median of 2.70)
GF Value™: €4.24 vs. price of €5.84 (37.6% above fair value)
Industry Position: 60.9% below the Chemicals median (#90 of 1636)
No single metric tells the full story. See the HAM:M3C stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mitsubishi Chemical Group Corp is a holding company which manufactures and sells chemicals, plastics, and pharmaceuticals. It organizes itself into five segments. The Basic Materials & Polymers segment covers petrochemical substrates, polyolefins, basic chemicals, sustainable polymers, engineering plastics, and carbon. The Industrial Gas segment focuses on industrial gases. The MMA & Derivatives segment includes MMA, PMMA, coatings, additives, and fine chemicals. The Pharmacy segment is engaged in medicines, and the Specialty Materials segment handles advanced films and polymers, advanced solutions, and advanced composites. The Others segment includes businesses such as engineering, transportation, and warehousing. It generates the majority of its revenue from the Industrial gas segment.
61GF Score
Get the complete analysis for HAM:M3C
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HAM:M3C has been successfully added to your 
