Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Japan Foods HoldingSGX:5OI 30 WACC % is 5.49% as of Sep. 10, 2026, which is 6% below its 10-year median of 5.86. GuruFocus rates SGX:5OI with a GF Score™ of 30/100 and a GF Value™ of S$0.28 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 367 Restaurants companies, Japan Foods Holding ranks better than 51.23% on this metric.
As of today (2026-09-10), Japan Foods Holding's weighted average cost of capital is 5.49%%. Japan Foods Holding's ROIC % is -7.05% (calculated using TTM income statement data).
Japan Foods Holding 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.
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 Foods Holding's weighted average cost of capital is 5.49%%. Japan Foods Holding's ROIC % is -7.05% (calculated using TTM income statement data).
Japan Foods Holding 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
Japan Foods Holding WACC % Historical Data
* Premium members only.
The historical data trend for Japan Foods Holding'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 Restaurants subindustry, Japan Foods Holding'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 Foods Holding WACC % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Japan Foods Holding's WACC % distribution charts can be found below:
* The bar in red indicates where Japan Foods Holding'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 Foods Holding's market capitalization (E) is S$18.758 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, Japan Foods Holding's latest one-year semi-annual average Book Value of Debt (D) is S$30.61 Mil.
a) weight of equity = E / (E + D) = 18.758 / (18.758 + 30.61) = 0.38
b) weight of debt = D / (E + D) = 30.61 / (18.758 + 30.61) = 0.62
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 4.867%. 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 Foods Holding's beta is 0.4393.
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 = 4.867% + 0.4393 * 6% = 7.5028%
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, Japan Foods Holding's interest expense (positive number) was S$1.389 Mil. Its total Book Value of Debt (D) is S$30.61 Mil.
Cost of Debt = 1.389 / 30.61 = 4.5377%.
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 = -0.43 / -7.102 = 6.05%.
Japan Foods Holding'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)
=
0.38
*
7.5028%
+
0.62
*
4.5377%
*
(1 - 6.05%)
=
5.49%
* 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 Foods Holding (SGX:5OI) has a WACC % of 5.49% as of Sep. 10, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Japan Foods Holding and its competitors. This is near median its historical median of 5.86. Over the past decade, Japan Foods Holding's WACC % has ranged from 4.12 to 7.30. According to the industry distribution chart, Japan Foods Holding ranks #179 out of 367 companies in the Restaurants industry, placing it in the top 48.8%.
Is Japan Foods Holding's WACC % too high?
Japan Foods Holding's current WACC % of 5.49% is near median its 10-year median of 5.86. Over the past 10 years, this metric has ranged from a low of 4.12 to a high of 7.30. The Restaurants industry median WACC % is 5.68. Japan Foods Holding's value of 5.49% is 3.3% below this industry median. Based on the distribution chart, Japan Foods Holding ranks #179 out of 367 companies in the Restaurants industry, which is above the industry midpoint. Overall, Japan Foods Holding has a GF Score™ of 30/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Japan Foods Holding's WACC % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Japan Foods Holding ranks #179 out of 367 companies for WACC %. This puts Japan Foods Holding in the upper half of its industry. The industry median WACC % is 5.68. Japan Foods Holding's value of 5.49% is 3.3% below this benchmark. Historically, Japan Foods Holding's own WACC % has ranged from 4.12 to 7.30 over the past decade. While the company's 10-year median is 5.86 vs. the industry median of 5.68, Japan Foods Holding 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 Restaurants company?
The median WACC % among Restaurants companies is 5.68, based on 367 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 Foods Holding's current WACC % of 5.49% is 3.3% 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 Foods Holding and its competitors. For the Restaurants industry, the median WACC % is 5.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Foods Holding's current WACC % is 5.49%, which is near median its own 10-year median of 5.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Foods Holding stock overvalued right now?
Based on GuruFocus' analysis, Japan Foods Holding (SGX:5OI) is currently considered Possible Value Trap. The stock's GF Value™ is S$0.28, compared to a current price of S$0.11 — trading 61.4% below its estimated fair value. The current WACC % is 5.49%, which is near median its 10-year median of 5.86 and 3.3% below the Restaurants industry median of 5.68. Japan Foods Holding's overall GF Score™ is 30/100 with 7 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 Foods Holding (SGX:5OI), the current WACC % is 5.49% as of Sep. 10, 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 Foods Holding (SGX:5OI) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Foods Holding stock appears to be undervalued.
The current stock price of S$0.11 is trading 61.4% below its estimated GF Value™ of S$0.28.
GuruFocus considers Japan Foods Holding to be Possible Value Trap.
Key valuation signals for SGX:5OI:
WACC %: 5.49% (near median its 10-year median of 5.86)
GF Value™: S$0.28 vs. price of S$0.11 (61.4% below fair value)
Industry Position: 3.3% below the Restaurants median (#179 of 367)
No single metric tells the full story. See the SGX:5OI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Foods Holding Ltd is an investment holding company. The company is engaged in the operation of restaurants as well as its ancillary business is in the supply of food ingredients to its sub-franchisees and franchisees. Its brand portfolio includes Tokyo Shokudo, Fruit Paradise, Milan Shokudo, Yakiniku Taro, and others. The company's operating segment includes Restaurant sales and Other segments. The company generates maximum revenue from the Restaurant sales segment. Geographically, it operates and derives revenue from Singapore.
30GF Score
Get the complete analysis for SGX:5OI
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SGX:5OI has been successfully added to your 
