Japan Hotel REIT InvestmentNIPOF 75 WACC % is 2.76% as of Jun. 24, 2026, which is 39% above its 10-year median of 1.99. GuruFocus rates NIPOF with a GF Score™ of 75/100 and a GF Value™ of $755.11 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 969 REITs companies, Japan Hotel REIT Investment ranks better than 87.41% on this metric.
As of today (2026-06-24), Japan Hotel REIT Investment's weighted average cost of capital is 2.76%%. Japan Hotel REIT Investment's ROIC % is 5.74% (calculated using TTM income statement data).
Japan Hotel REIT Investment 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.
Japan Hotel REIT Investment (OTCPK:NIPOF) 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, Japan Hotel REIT Investment's weighted average cost of capital is 2.76%%. Japan Hotel REIT Investment's ROIC % is 5.74% (calculated using TTM income statement data).
Japan Hotel REIT Investment 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.
Related Terms
Japan Hotel REIT Investment 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 REIT - Hotel & Motel subindustry, Japan Hotel REIT Investment'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.
Japan Hotel REIT Investment WACC % vs REITs Industry
For the REITs industry and Real Estate sector, Japan Hotel REIT Investment's WACC % distribution charts can be found below:
* The bar in red indicates where Japan Hotel REIT Investment'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, Japan Hotel REIT Investment's market capitalization (E) is $2820.897 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, Japan Hotel REIT Investment's latest one-year semi-annual average Book Value of Debt (D) is $1642.615 Mil.
a) weight of equity = E / (E + D) = 2820.897 / (2820.897 + 1642.615) = 0.632
b) weight of debt = D / (E + D) = 1642.615 / (2820.897 + 1642.615) = 0.368
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. Japan Hotel REIT Investment's beta is 0.1626.
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% + 0.1626 * 6% = 3.6256%
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, Japan Hotel REIT Investment's interest expense (positive number) was $20.722 Mil. Its total Book Value of Debt (D) is $1642.615 Mil.
Cost of Debt = 20.722 / 1642.615 = 1.2615%.
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 = 0.008 / 180.587 = 0%.
* 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.
Japan Hotel REIT Investment (NIPOF) has a WACC % of 2.76% as of Jun. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Japan Hotel REIT Investment and its competitors. This is 39% above median its historical median of 1.99. Over the past decade, Japan Hotel REIT Investment's WACC % has ranged from 0.98 to 6.82. According to the industry distribution chart, Japan Hotel REIT Investment ranks #122 out of 969 companies in the REITs industry, placing it in the top 12.6%.
Is Japan Hotel REIT Investment's WACC % too high?
Japan Hotel REIT Investment's current WACC % of 2.76% is 39% above median its 10-year median of 1.99. Over the past 10 years, this metric has ranged from a low of 0.98 to a high of 6.82. The REITs industry median WACC % is 6.66. Japan Hotel REIT Investment's value of 2.76% is 58.6% below this industry median. Based on the distribution chart, Japan Hotel REIT Investment ranks #122 out of 969 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Japan Hotel REIT Investment has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Japan Hotel REIT Investment's WACC % compare to HST and RHP?
According to the REITs industry distribution chart, Japan Hotel REIT Investment ranks #122 out of 969 companies for WACC %. This places Japan Hotel REIT Investment in the top 13% of its industry — outperforming the majority of peers. The industry median WACC % is 6.66. Japan Hotel REIT Investment's value of 2.76% is 58.6% below this benchmark. Historically, Japan Hotel REIT Investment's own WACC % has ranged from 0.98 to 6.82 over the past decade. While the company's 10-year median is 1.99 vs. the industry median of 6.66, Japan Hotel REIT Investment 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 REITs company?
The median WACC % among REITs companies is 6.66, based on 969 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. Japan Hotel REIT Investment's current WACC % of 2.76% is 58.6% 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 Japan Hotel REIT Investment and its competitors. For the REITs industry, the median WACC % is 6.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Hotel REIT Investment's current WACC % is 2.76%, which is 39% above median its own 10-year median of 1.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Hotel REIT Investment stock overvalued right now?
Based on GuruFocus' analysis, Japan Hotel REIT Investment (NIPOF) is currently considered Possible Value Trap. The stock's GF Value™ is $755.11, compared to a current price of $471.74 — trading 37.5% below its estimated fair value. The current WACC % is 2.76%, which is 39% above median its 10-year median of 1.99 and 58.6% below the REITs industry median of 6.66. Japan Hotel REIT Investment's overall GF Score™ is 75/100 with 5 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 Japan Hotel REIT Investment (NIPOF), the current WACC % is 2.76% as of Jun. 24, 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 Japan Hotel REIT Investment (NIPOF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Hotel REIT Investment stock appears to be undervalued.
The current stock price of $471.74 is trading 37.5% below its estimated GF Value™ of $755.11.
GuruFocus considers Japan Hotel REIT Investment to be Possible Value Trap.
Key valuation signals for NIPOF:
WACC %: 2.76% (39% above median its 10-year median of 1.99)
GF Value™: $755.11 vs. price of $471.74 (37.5% below fair value)
Industry Position: 58.6% below the REITs median (#122 of 969)
No single metric tells the full story. See the NIPOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Hotel REIT Investment Corp is a real estate investment trust. It aims to achieve stable earnings and sustainable growth in the asset from mid- to long-term perspectives. The company invests in business hotels, resort hotels, and city hotels, mainly located in the metropolitan areas and other cities of Japan.
75GF Score
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