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As of today (2026-07-14), Hokkai Electrical Construction Co's weighted average cost of capital is 5.6%%. Hokkai Electrical Construction Co's ROIC % is 9.46% (calculated using TTM income statement data).
Hokkai Electrical Construction 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.
Hokkai Electrical Construction Co (SSE:1832) 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, Hokkai Electrical Construction Co's weighted average cost of capital is 5.6%%. Hokkai Electrical Construction Co's ROIC % is 9.46% (calculated using TTM income statement data).
Hokkai Electrical Construction 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.
Related Terms
Hokkai Electrical Construction Co 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 Engineering & Construction subindustry, Hokkai Electrical Construction 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.
Hokkai Electrical Construction Co WACC % vs Construction Industry
For the Construction industry and Industrials sector, Hokkai Electrical Construction Co's WACC % distribution charts can be found below:
* The bar in red indicates where Hokkai Electrical Construction Co's WACC % falls into.
Hokkai Electrical Construction Co WACC % Calculation
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, Hokkai Electrical Construction Co's market capitalization (E) is 円28404.751 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, Hokkai Electrical Construction Co's latest one-year semi-annual average Book Value of Debt (D) is 円0 Mil.
a) weight of equity = E / (E + D) = 28404.751 / (28404.751 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (28404.751 + 0) = 0
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. Hokkai Electrical Construction Co's beta is 0.4917.
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% + 0.4917 * 6% = 5.6002%
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, Hokkai Electrical Construction Co's interest expense (positive number) was 円-0 Mil. Its total Book Value of Debt (D) is 円0 Mil.
Cost of Debt = -0 / 0 = %.
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 = 1458 / 5176 = 28.17%.
* 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.
Hokkai Electrical Construction Co (SSE:1832) has a WACC % of 5.6% as of Jul. 14, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Hokkai Electrical Construction Co and its competitors. This is 789% above median its historical median of 0.63. According to the industry distribution chart, Hokkai Electrical Construction Co ranks #602 out of 1806 companies in the Construction industry, placing it in the top 33.3%.
Is Hokkai Electrical Construction Co's WACC % too high?
Hokkai Electrical Construction Co's current WACC % of 5.6% is 789% above median its 10-year median of 0.63. The Construction industry median WACC % is 7.73. Hokkai Electrical Construction Co's value of 5.6% is 27.6% below this industry median. Based on the distribution chart, Hokkai Electrical Construction Co ranks #602 out of 1806 companies in the Construction industry, which is above the industry midpoint. Overall, Hokkai Electrical Construction Co has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hokkai Electrical Construction Co's WACC % compare to PWR and FIX?
According to the Construction industry distribution chart, Hokkai Electrical Construction Co ranks #602 out of 1806 companies for WACC %. This puts Hokkai Electrical Construction Co in the upper half of its industry. The industry median WACC % is 7.73. Hokkai Electrical Construction Co's value of 5.6% is 27.6% below this benchmark. While the company's 10-year median is 0.63 vs. the industry median of 7.73, Hokkai Electrical Construction 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 7.73, based on 1,806 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. Hokkai Electrical Construction Co's current WACC % of 5.6% is 27.6% 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 Hokkai Electrical Construction Co and its competitors. For the Construction industry, the median WACC % is 7.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hokkai Electrical Construction Co's current WACC % is 5.6%, which is 789% above median its own 10-year median of 0.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hokkai Electrical Construction Co stock overvalued right now?
Based on GuruFocus' analysis, Hokkai Electrical Construction Co (SSE:1832) is currently considered Significantly Overvalued. The stock's GF Value™ is 円979.30, compared to a current price of 円1,371.00 — trading 40% above its estimated fair value. The current WACC % is 5.6%, which is 789% above median its 10-year median of 0.63 and 27.6% below the Construction industry median of 7.73. Hokkai Electrical Construction Co's overall GF Score™ is 68/100 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 Hokkai Electrical Construction Co (SSE:1832), the current WACC % is 5.6% as of Jul. 14, 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 Hokkai Electrical Construction Co (SSE:1832) Overvalued in 2026?
Based on GuruFocus' analysis, Hokkai Electrical Construction Co stock appears to be overvalued.
The current stock price of 円1,371.00 is trading 40% above its estimated GF Value™ of 円979.30.
GuruFocus considers Hokkai Electrical Construction Co to be Significantly Overvalued.
Key valuation signals for SSE:1832:
WACC %: 5.6% (789% above median its 10-year median of 0.63)
GF Value™: 円979.30 vs. price of 円1,371.00 (40% above fair value)
Industry Position: 27.6% below the Construction median (#602 of 1806)
No single metric tells the full story. See the SSE:1832 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hokkai Electrical Construction Co Business Description
Hokkai Electrical Construction Co Inc manufactures electrical equipment and mechanical equipment. The company also manufactures power generation equipment such as photovoltaic power generation and wind power generation, interconnection equipment of low pressure, high pressure, special high pressure for interconnecting to the electric power system, and system requirement equipment such as storage battery installation. The company provides power distribution facility and telecommunications network facility.
68GF Score
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