Isetan Mitsukoshi HoldingsIMHDF 65 WACC % is 5.35% as of Jun. 28, 2026, which is 12% above its 10-year median of 4.77. GuruFocus rates IMHDF with a GF Score™ of 65/100 and a GF Value™ of $11.65. The stock has 8 warning signs investors should review. Among 1,138 Retail - Cyclical companies, Isetan Mitsukoshi Holdings ranks better than 55.36% on this metric.
As of today (2026-06-28), Isetan Mitsukoshi Holdings's weighted average cost of capital is 5.35%%. Isetan Mitsukoshi Holdings's ROIC % is 5.47% (calculated using TTM income statement data).
Isetan Mitsukoshi Holdings 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.
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, Isetan Mitsukoshi Holdings's weighted average cost of capital is 5.35%%. Isetan Mitsukoshi Holdings's ROIC % is 5.47% (calculated using TTM income statement data).
Isetan Mitsukoshi Holdings 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 Department Stores subindustry, Isetan Mitsukoshi Holdings'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.
Isetan Mitsukoshi Holdings WACC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Isetan Mitsukoshi Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Isetan Mitsukoshi Holdings'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, Isetan Mitsukoshi Holdings's market capitalization (E) is $8896.065 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, Isetan Mitsukoshi Holdings's latest one-year quarterly average Book Value of Debt (D) is $548.717 Mil.
a) weight of equity = E / (E + D) = 8896.065 / (8896.065 + 548.717) = 0.9419
b) weight of debt = D / (E + D) = 548.717 / (8896.065 + 548.717) = 0.0581
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. Isetan Mitsukoshi Holdings's beta is 0.4972.
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% + 0.4972 * 6% = 5.6332%
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, Isetan Mitsukoshi Holdings's interest expense (positive number) was $5.6 Mil. Its total Book Value of Debt (D) is $548.717 Mil.
Cost of Debt = 5.6 / 548.717 = 1.0206%.
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 = 133.294 / 631.767 = 21.1%.
* 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.
Isetan Mitsukoshi Holdings (IMHDF) has a WACC % of 5.35% as of Jun. 28, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Isetan Mitsukoshi Holdings and its competitors. This is 12% above median its historical median of 4.77. Over the past decade, Isetan Mitsukoshi Holdings' WACC % has ranged from 2.39 to 6.87. According to the industry distribution chart, Isetan Mitsukoshi Holdings ranks #508 out of 1138 companies in the Retail - Cyclical industry, placing it in the top 44.6%.
Is Isetan Mitsukoshi Holdings' WACC % too high?
Isetan Mitsukoshi Holdings' current WACC % of 5.35% is 12% above median its 10-year median of 4.77. Over the past 10 years, this metric has ranged from a low of 2.39 to a high of 6.87. The Retail - Cyclical industry median WACC % is 7.56. Isetan Mitsukoshi Holdings' value of 5.35% is 29.2% below this industry median. Based on the distribution chart, Isetan Mitsukoshi Holdings ranks #508 out of 1138 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Isetan Mitsukoshi Holdings has a GF Score™ of 65/100, reflecting its overall financial health beyond just this single metric.
How does Isetan Mitsukoshi Holdings' WACC % compare to DDS?
According to the Retail - Cyclical industry distribution chart, Isetan Mitsukoshi Holdings ranks #508 out of 1138 companies for WACC %. This puts Isetan Mitsukoshi Holdings in the upper half of its industry. The industry median WACC % is 7.56. Isetan Mitsukoshi Holdings' value of 5.35% is 29.2% below this benchmark. Historically, Isetan Mitsukoshi Holdings' own WACC % has ranged from 2.39 to 6.87 over the past decade. While the company's 10-year median is 4.77 vs. the industry median of 7.56, Isetan Mitsukoshi Holdings 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 Retail - Cyclical company?
The median WACC % among Retail - Cyclical companies is 7.56, based on 1,138 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. Isetan Mitsukoshi Holdings's current WACC % of 5.35% is 29.2% 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 Isetan Mitsukoshi Holdings and its competitors. For the Retail - Cyclical industry, the median WACC % is 7.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Isetan Mitsukoshi Holdings's current WACC % is 5.35%, which is 12% above median its own 10-year median of 4.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Isetan Mitsukoshi Holdings stock overvalued right now?
Isetan Mitsukoshi Holdings (IMHDF) has a current WACC % of 5.35%. The stock's GF Value™ is $11.65, compared to a current price of $19.51 — trading 67.5% above its estimated fair value. The current WACC % is 5.35%, which is 12% above median its 10-year median of 4.77 and 29.2% below the Retail - Cyclical industry median of 7.56. Isetan Mitsukoshi Holdings' overall GF Score™ is 65/100 with 8 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 Isetan Mitsukoshi Holdings (IMHDF), the current WACC % is 5.35% as of Jun. 28, 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 Isetan Mitsukoshi Holdings (IMHDF) Overvalued in 2026?
Based on GuruFocus' analysis, Isetan Mitsukoshi Holdings stock appears to be overvalued.
The current stock price of $19.51 is trading 67.5% above its estimated GF Value™ of $11.65.
Key valuation signals for IMHDF:
WACC %: 5.35% (12% above median its 10-year median of 4.77)
GF Value™: $11.65 vs. price of $19.51 (67.5% above fair value)
Industry Position: 29.2% below the Retail - Cyclical median (#508 of 1138)
No single metric tells the full story. See the IMHDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Isetan Mitsukoshi Holdings Ltd is a Japan-based company engaged in the department store business. The company operates through three segments. The Credit, Finance, and Friends Association segment handles credit card services, lending, insurance agency operations, and friend association management. The Department Store segment offers a wide range of clothing, personal goods, household products, and foodstuffs. The Real Estate segment engages in leasing, tenant management, and building interiors. The Others segment covers diverse businesses, including retail, manufacturing, import/export, wholesale, logistics, human resources, information processing, media, and travel services. It generates the majority of its revenue from the Department store business segment.
65GF Score
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