Avi Japan Opportunity TrustLSE:AJOT -1.20%55 WACC % is 10.95% as of Jul. 12, 2026, which is 60% above its 10-year median of 6.85. GuruFocus rates LSE:AJOT with a GF Score™ of 55/100 and a GF Value™ of £1.82 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,654 Asset Management companies, Avi Japan Opportunity Trust ranks worse than 81.26% on this metric.
As of today (2026-07-12), Avi Japan Opportunity Trust's weighted average cost of capital is 10.95%%. Avi Japan Opportunity Trust's ROIC % is 0.00% (calculated using TTM income statement data).
Avi Japan Opportunity Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Avi Japan Opportunity Trust (LSE:AJOT) 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, Avi Japan Opportunity Trust's weighted average cost of capital is 10.95%%. Avi Japan Opportunity Trust's ROIC % is 0.00% (calculated using TTM income statement data).
Avi Japan Opportunity Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual 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 semi-annual average debt to get the simplified cost of debt.
Related Terms
Avi Japan Opportunity Trust WACC % Historical Data
* 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 Asset Management subindustry, Avi Japan Opportunity Trust'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.
Avi Japan Opportunity Trust WACC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Avi Japan Opportunity Trust's WACC % distribution charts can be found below:
* The bar in red indicates where Avi Japan Opportunity Trust'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, Avi Japan Opportunity Trust's market capitalization (E) is £366.957 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 semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Avi Japan Opportunity Trust's latest one-year semi-annual average Book Value of Debt (D) is £26.5077 Mil.
a) weight of equity = E / (E + D) = 366.957 / (366.957 + 26.5077) = 0.9326
b) weight of debt = D / (E + D) = 26.5077 / (366.957 + 26.5077) = 0.0674
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 4.9416%. 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. Avi Japan Opportunity Trust's beta is 1.1083.
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 = 4.9416% + 1.1083 * 6% = 11.5914%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Dec. 2025, Avi Japan Opportunity Trust's interest expense (positive number) was £0.56 Mil. Its total Book Value of Debt (D) is £26.5077 Mil.
Cost of Debt = 0.56 / 26.5077 = 2.1126%.
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 = 0.736 / 41.853 = 1.76%.
* 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.
Avi Japan Opportunity Trust (LSE:AJOT) has a WACC % of 10.95% as of Jul. 12, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Avi Japan Opportunity Trust and its competitors. This is 60% above median its historical median of 6.85. Over the past decade, Avi Japan Opportunity Trust's WACC % has ranged from 2.64 to 10.95. According to the industry distribution chart, Avi Japan Opportunity Trust ranks #1344 out of 1654 companies in the Asset Management industry, placing it in the top 81.3%.
Is Avi Japan Opportunity Trust's WACC % too high?
Avi Japan Opportunity Trust's current WACC % of 10.95% is 60% above median its 10-year median of 6.85. Over the past 10 years, this metric has ranged from a low of 2.64 to a high of 10.95. The Asset Management industry median WACC % is 8.47. Avi Japan Opportunity Trust's value of 10.95% is 29.3% above this industry median. Based on the distribution chart, Avi Japan Opportunity Trust ranks #1344 out of 1654 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Avi Japan Opportunity Trust has a GF Score™ of 55/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Avi Japan Opportunity Trust's WACC % compare to BLK and BX?
According to the Asset Management industry distribution chart, Avi Japan Opportunity Trust ranks #1344 out of 1654 companies for WACC %. This places Avi Japan Opportunity Trust in the lower half of its industry. The industry median WACC % is 8.47. Avi Japan Opportunity Trust's value of 10.95% is 29.3% above this benchmark. Historically, Avi Japan Opportunity Trust's own WACC % has ranged from 2.64 to 10.95 over the past decade. While the company's 10-year median is 6.85 vs. the industry median of 8.47, Avi Japan Opportunity Trust 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 an Asset Management company?
The median WACC % among Asset Management companies is 8.47, based on 1,654 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. Avi Japan Opportunity Trust's current WACC % of 10.95% is 29.3% 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 Avi Japan Opportunity Trust and its competitors. For the Asset Management industry, the median WACC % is 8.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avi Japan Opportunity Trust's current WACC % is 10.95%, which is 60% above median its own 10-year median of 6.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avi Japan Opportunity Trust stock overvalued right now?
Based on GuruFocus' analysis, Avi Japan Opportunity Trust (LSE:AJOT) is currently considered Fairly Valued. The stock's GF Value™ is £1.82, compared to a current price of £1.65 — trading 9.3% below its estimated fair value. The current WACC % is 10.95%, which is 60% above median its 10-year median of 6.85 and 29.3% above the Asset Management industry median of 8.47. Avi Japan Opportunity Trust's overall GF Score™ is 55/100 with 3 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 Avi Japan Opportunity Trust (LSE:AJOT), the current WACC % is 10.95% as of Jul. 12, 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 Avi Japan Opportunity Trust (LSE:AJOT) Overvalued in 2026?
Based on GuruFocus' analysis, Avi Japan Opportunity Trust stock appears to be undervalued.
The current stock price of £1.65 is trading 9.3% below its estimated GF Value™ of £1.82.
GuruFocus considers Avi Japan Opportunity Trust to be Fairly Valued.
Key valuation signals for LSE:AJOT:
WACC %: 10.95% (60% above median its 10-year median of 6.85)
GF Value™: £1.82 vs. price of £1.65 (9.3% below fair value)
Industry Position: 29.3% above the Asset Management median (#1344 of 1654)
No single metric tells the full story. See the LSE:AJOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avi Japan Opportunity Trust PLC is a closed-ended investment company. Its investment objective is to provide shareholders with capital growth in excess of the MSCI Japan Small Cap Index, through the active management of a focused portfolio of equity investments listed or quoted in Japan which have been identified as undervalued and having a substantial proportion of their market capitalisation held in cash, listed securities and/or realisable assets.
55GF Score
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