DOWA Holdings CoNGO:5714 73 WACC % is 1.71% as of Jul. 05, 2026, which is 64% below its 10-year median of 4.72. GuruFocus rates NGO:5714 with a GF Score™ of 73/100 and a GF Value™ of 円2,845.18. The stock has 3 warning signs investors should review. Among 2,662 Metals & Mining companies, DOWA Holdings Co ranks better than 76.63% on this metric.
As of today (2026-07-05), DOWA Holdings Co's weighted average cost of capital is 1.71%%. DOWA Holdings Co's ROIC % is 4.69% (calculated using TTM income statement data).
DOWA Holdings 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.
DOWA Holdings Co (NGO:5714) 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, DOWA Holdings Co's weighted average cost of capital is 1.71%%. DOWA Holdings Co's ROIC % is 4.69% (calculated using TTM income statement data).
DOWA Holdings 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.
Related Terms
DOWA Holdings Co WACC % Historical Data
* Premium members only.
The historical data trend for DOWA Holdings Co's WACC % can be seen below:
* 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 Other Industrial Metals & Mining subindustry, DOWA Holdings 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.
DOWA Holdings Co WACC % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, DOWA Holdings Co's WACC % distribution charts can be found below:
* The bar in red indicates where DOWA Holdings 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, DOWA Holdings Co's market capitalization (E) is 円522516.056 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, DOWA Holdings Co's latest one-year quarterly average Book Value of Debt (D) is 円143725.2 Mil.
a) weight of equity = E / (E + D) = 522516.056 / (522516.056 + 143725.2) = 0.7843
b) weight of debt = D / (E + D) = 143725.2 / (522516.056 + 143725.2) = 0.2157
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. DOWA Holdings Co's beta is -0.1076.
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% + -0.1076 * 6% = 2.0044%
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, DOWA Holdings Co's interest expense (positive number) was 円1115 Mil. Its total Book Value of Debt (D) is 円143725.2 Mil.
Cost of Debt = 1115 / 143725.2 = 0.7758%.
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 = 13609 / 78104 = 17.42%.
DOWA Holdings Co's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.7843
*
2.0044%
+
0.2157
*
0.7758%
*
(1 - 17.42%)
=
1.71%
* 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.
DOWA Holdings Co (NGO:5714) has a WACC % of 1.71% as of Jul. 05, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on DOWA Holdings Co and its competitors. This is 64% below median its historical median of 4.72. Over the past decade, DOWA Holdings Co's WACC % has ranged from 2.66 to 6.40. According to the industry distribution chart, DOWA Holdings Co ranks #622 out of 2662 companies in the Metals & Mining industry, placing it in the top 23.4%.
Is DOWA Holdings Co's WACC % too high?
DOWA Holdings Co's current WACC % of 1.71% is 64% below median its 10-year median of 4.72. Over the past 10 years, this metric has ranged from a low of 2.66 to a high of 6.40. The Metals & Mining industry median WACC % is 9.70. DOWA Holdings Co's value of 1.71% is 82.4% below this industry median. Based on the distribution chart, DOWA Holdings Co ranks #622 out of 2662 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, DOWA Holdings Co has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does DOWA Holdings Co's WACC % compare to competitors?
According to the Metals & Mining industry distribution chart, DOWA Holdings Co ranks #622 out of 2662 companies for WACC %. This places DOWA Holdings Co in the top 23% of its industry — outperforming the majority of peers. The industry median WACC % is 9.70. DOWA Holdings Co's value of 1.71% is 82.4% below this benchmark. Historically, DOWA Holdings Co's own WACC % has ranged from 2.66 to 6.40 over the past decade. While the company's 10-year median is 4.72 vs. the industry median of 9.70, DOWA Holdings 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 Metals & Mining company?
The median WACC % among Metals & Mining companies is 9.70, based on 2,662 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. DOWA Holdings Co's current WACC % of 1.71% is 82.4% 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 DOWA Holdings Co and its competitors. For the Metals & Mining industry, the median WACC % is 9.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DOWA Holdings Co's current WACC % is 1.71%, which is 64% below median its own 10-year median of 4.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DOWA Holdings Co stock overvalued right now?
DOWA Holdings Co (NGO:5714) has a current WACC % of 1.71%. The stock's GF Value™ is 円2,845.18, compared to a current price of 円4,570.00 — trading 60.6% above its estimated fair value. The current WACC % is 1.71%, which is 64% below median its 10-year median of 4.72 and 82.4% below the Metals & Mining industry median of 9.70. DOWA Holdings Co's overall GF Score™ is 73/100 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 DOWA Holdings Co (NGO:5714), the current WACC % is 1.71% as of Jul. 05, 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 DOWA Holdings Co (NGO:5714) Overvalued in 2026?
Based on GuruFocus' analysis, DOWA Holdings Co stock appears to be overvalued.
The current stock price of 円4,570.00 is trading 60.6% above its estimated GF Value™ of 円2,845.18.
Key valuation signals for NGO:5714:
WACC %: 1.71% (64% below median its 10-year median of 4.72)
GF Value™: 円2,845.18 vs. price of 円4,570.00 (60.6% above fair value)
Industry Position: 82.4% below the Metals & Mining median (#622 of 2662)
No single metric tells the full story. See the NGO:5714 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DOWA Holdings Co Ltd is a Japanese conglomerate engaged in electronic materials, recycling, heat treatment, metal processing, and smelting businesses. The company operates five business segments. The Electronic Materials segment makes high-purity metals, semiconductor wafers, LEDs, batteries, and magnetic materials. The Environment/Recycling segment handles waste disposal, soil remediation, resource recovery, and logistics. The Heat Treatment segment provides metal surface treatment, processing equipment, and related services. The Metal Processing segment produces copper, brass, alloys, and circuit boards. The Smelting segment manufactures metals and chemicals, while Others covers real estate, construction, and technology. It generates the majority of its revenue from the Smelting segment.
73GF Score
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