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Kawasaki Setsubi Kogyo CoNGO:1777 +0.22%78 WACC % is 4.9% as of Jul. 23, 2026, which is 88% above its 10-year median of 2.61. GuruFocus rates NGO:1777 with a GF Score™ of 78/100 and a GF Value™ of 円1,366.57 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,809 Construction companies, Kawasaki Setsubi Kogyo Co ranks better than 71.2% on this metric.
As of today (2026-07-23), Kawasaki Setsubi Kogyo Co's weighted average cost of capital is 4.9%%. Kawasaki Setsubi Kogyo Co's ROIC % is 21.95% (calculated using TTM income statement data).
Kawasaki Setsubi Kogyo 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.
Kawasaki Setsubi Kogyo Co (NGO:1777) 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, Kawasaki Setsubi Kogyo Co's weighted average cost of capital is 4.9%%. Kawasaki Setsubi Kogyo Co's ROIC % is 21.95% (calculated using TTM income statement data).
Kawasaki Setsubi Kogyo 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 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.
* 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, Kawasaki Setsubi Kogyo 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.
Kawasaki Setsubi Kogyo Co WACC % vs Construction Industry
For the Construction industry and Industrials sector, Kawasaki Setsubi Kogyo Co's WACC % distribution charts can be found below:
* The bar in red indicates where Kawasaki Setsubi Kogyo 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, Kawasaki Setsubi Kogyo Co's market capitalization (E) is 円27864.480 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 Mar. 2026, Kawasaki Setsubi Kogyo Co's latest one-year semi-annual average Book Value of Debt (D) is 円365.5 Mil.
a) weight of equity = E / (E + D) = 27864.480 / (27864.480 + 365.5) = 0.9871
b) weight of debt = D / (E + D) = 365.5 / (27864.480 + 365.5) = 0.0129
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. Kawasaki Setsubi Kogyo Co's beta is 0.3809.
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% + 0.3809 * 6% = 4.9554%
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 Mar. 2026, Kawasaki Setsubi Kogyo Co's interest expense (positive number) was 円5 Mil. Its total Book Value of Debt (D) is 円365.5 Mil.
Cost of Debt = 5 / 365.5 = 1.368%.
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 = 1301 / 4986 = 26.09%.
* 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.
Kawasaki Setsubi Kogyo Co (NGO:1777) has a WACC % of 4.9% as of Jul. 23, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Kawasaki Setsubi Kogyo Co and its competitors. This is 88% above median its historical median of 2.61. Over the past decade, Kawasaki Setsubi Kogyo Co's WACC % has ranged from 0.84 to 5.37. According to the industry distribution chart, Kawasaki Setsubi Kogyo Co ranks #521 out of 1809 companies in the Construction industry, placing it in the top 28.8%.
Is Kawasaki Setsubi Kogyo Co's WACC % too high?
Kawasaki Setsubi Kogyo Co's current WACC % of 4.9% is 88% above median its 10-year median of 2.61. Over the past 10 years, this metric has ranged from a low of 0.84 to a high of 5.37. The Construction industry median WACC % is 7.72. Kawasaki Setsubi Kogyo Co's value of 4.9% is 36.5% below this industry median. Based on the distribution chart, Kawasaki Setsubi Kogyo Co ranks #521 out of 1809 companies in the Construction industry, which is above the industry midpoint. Overall, Kawasaki Setsubi Kogyo Co has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kawasaki Setsubi Kogyo Co's WACC % compare to PWR and FIX?
According to the Construction industry distribution chart, Kawasaki Setsubi Kogyo Co ranks #521 out of 1809 companies for WACC %. This puts Kawasaki Setsubi Kogyo Co in the upper half of its industry. The industry median WACC % is 7.72. Kawasaki Setsubi Kogyo Co's value of 4.9% is 36.5% below this benchmark. Historically, Kawasaki Setsubi Kogyo Co's own WACC % has ranged from 0.84 to 5.37 over the past decade. While the company's 10-year median is 2.61 vs. the industry median of 7.72, Kawasaki Setsubi Kogyo 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 7.72, based on 1,809 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. Kawasaki Setsubi Kogyo Co's current WACC % of 4.9% is 36.5% 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 Kawasaki Setsubi Kogyo Co and its competitors. For the Construction industry, the median WACC % is 7.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kawasaki Setsubi Kogyo Co's current WACC % is 4.9%, which is 88% above median its own 10-year median of 2.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kawasaki Setsubi Kogyo Co stock overvalued right now?
Based on GuruFocus' analysis, Kawasaki Setsubi Kogyo Co (NGO:1777) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,366.57, compared to a current price of 円2,329.00 — trading 70.4% above its estimated fair value. The current WACC % is 4.9%, which is 88% above median its 10-year median of 2.61 and 36.5% below the Construction industry median of 7.72. Kawasaki Setsubi Kogyo Co's overall GF Score™ is 78/100 with 1 warning sign 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 Kawasaki Setsubi Kogyo Co (NGO:1777), the current WACC % is 4.9% as of Jul. 23, 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 Kawasaki Setsubi Kogyo Co (NGO:1777) Overvalued in 2026?
Based on GuruFocus' analysis, Kawasaki Setsubi Kogyo Co stock appears to be overvalued.
The current stock price of 円2,329.00 is trading 70.4% above its estimated GF Value™ of 円1,366.57.
GuruFocus considers Kawasaki Setsubi Kogyo Co to be Significantly Overvalued.
Key valuation signals for NGO:1777:
WACC %: 4.9% (88% above median its 10-year median of 2.61)
GF Value™: 円1,366.57 vs. price of 円2,329.00 (70.4% above fair value)
Industry Position: 36.5% below the Construction median (#521 of 1809)
No single metric tells the full story. See the NGO:1777 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kawasaki Setsubi Kogyo Co Ltd is a Japan-based design and construction company. The company designs and constructs air conditioning, water supply, and drainage sanitary equipment and electrical works, and develops comprehensive strategies for each region. The company also provides maintenance services. The company's segment includes Eastern, Central, and Western. The company generates the majority of its revenue from Central.
78GF Score
Get the complete analysis for NGO:1777
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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