Information Strategy and Technology Co (TSE:155A) WACC %:7.54% (As of Jul. 14, 2026) — 15% Above Median

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TSE:155A Information Strategy and Technology Co Ltd TSE:155A
18 GF Score
Price 円909.00
! 3 Warning Signs
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What is Information Strategy and Technology Co WACC %?

Information Strategy and Technology Co TSE:155A +0.78% 18 WACC % is 7.54% as of Jul. 14, 2026, which is 15% above its 10-year median of 6.56. GuruFocus rates TSE:155A with a GF Score™ of 18/100. The stock has 3 warning signs investors should review. Among 2,919 Software companies, Information Strategy and Technology Co ranks better than 58.72% on this metric.

As of today (2026-07-14), Information Strategy and Technology Co's weighted average cost of capital is 7.54%%. Information Strategy and Technology Co's ROIC % is 10.89% (calculated using TTM income statement data). Information Strategy and Technology 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.

*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.

For a comprehensive WACC calculation, please access the WACC Calculator.


Information Strategy and Technology Co  (TSE:155A) 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, Information Strategy and Technology Co's weighted average cost of capital is 7.54%%. Information Strategy and Technology Co's ROIC % is 10.89% (calculated using TTM income statement data). Information Strategy and Technology 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.

*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.


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

Information Strategy and Technology Co WACC % Historical Data

* Premium members only.

The historical data trend for Information Strategy and Technology 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.

Information Strategy and Technology Co WACC % Chart

Information Strategy and Technology Co Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
WACC %
0.18 0.00 0.15 6.56 7.46

Information Strategy and Technology Co Quarterly Data
Dec21 Dec22 Sep23 Dec23 Mar24 Jun24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
WACC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.62 6.43 6.86 7.46 0.00

TSE:155A vs IBM, ACN, FISV: WACC % Comparison

For the Information Technology Services subindustry, Information Strategy and Technology 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.


Information Strategy and Technology Co WACC % vs Software Industry

For the Software industry and Technology sector, Information Strategy and Technology Co's WACC % distribution charts can be found below:

* The bar in red indicates where Information Strategy and Technology Co's WACC % falls into.


TSE:155A
18GF Score
Information Strategy and Technology Co Ltd TSE:155A
WACC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Information Strategy and Technology 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, Information Strategy and Technology Co's market capitalization (E) is 円9349.523 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, Information Strategy and Technology Co's latest one-year quarterly average Book Value of Debt (D) is 円1449.89 Mil.
a) weight of equity = E / (E + D) = 9349.523 / (9349.523 + 1449.89) = 0.8657
b) weight of debt = D / (E + D) = 1449.89 / (9349.523 + 1449.89) = 0.1343

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. Information Strategy and Technology Co's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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% + 1 * 6% = 8.65%

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, Information Strategy and Technology Co's interest expense (positive number) was 円8.606 Mil. Its total Book Value of Debt (D) is 円1449.89 Mil.
Cost of Debt = 8.606 / 1449.89 = 0.5936%.

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 = 130.55 / 322.031 = 40.54%.

Information Strategy and Technology 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)
=0.8657*8.65%+0.1343*0.5936%*(1 - 40.54%)
=7.54%

* 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.

Frequently Asked Questions Learn more about WACC % →
What does a WACC % of 7.54% mean?
Information Strategy and Technology Co (TSE:155A) has a WACC % of 7.54% 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 Information Strategy and Technology Co and its competitors. This is 15% above median its historical median of 6.56. Over the past decade, Information Strategy and Technology Co's WACC % has ranged from 0.15 to 7.74. According to the industry distribution chart, Information Strategy and Technology Co ranks #1205 out of 2919 companies in the Software industry, placing it in the top 41.3%.
Is Information Strategy and Technology Co's WACC % too high?
Information Strategy and Technology Co's current WACC % of 7.54% is 15% above median its 10-year median of 6.56. Over the past 10 years, this metric has ranged from a low of 0.15 to a high of 7.74. The Software industry median WACC % is 9.04. Information Strategy and Technology Co's value of 7.54% is 16.6% below this industry median. Based on the distribution chart, Information Strategy and Technology Co ranks #1205 out of 2919 companies in the Software industry, which is above the industry midpoint. Overall, Information Strategy and Technology Co has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Information Strategy and Technology Co's WACC % compare to IBM and ACN?
According to the Software industry distribution chart, Information Strategy and Technology Co ranks #1205 out of 2919 companies for WACC %. This puts Information Strategy and Technology Co in the upper half of its industry. The industry median WACC % is 9.04. Information Strategy and Technology Co's value of 7.54% is 16.6% below this benchmark. Historically, Information Strategy and Technology Co's own WACC % has ranged from 0.15 to 7.74 over the past decade. While the company's 10-year median is 6.56 vs. the industry median of 9.04, Information Strategy and Technology 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 Software company?
The median WACC % among Software companies is 9.04, based on 2,919 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. Information Strategy and Technology Co's current WACC % of 7.54% is 16.6% 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 Information Strategy and Technology Co and its competitors. For the Software industry, the median WACC % is 9.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Information Strategy and Technology Co's current WACC % is 7.54%, which is 15% above median its own 10-year median of 6.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Information Strategy and Technology Co stock overvalued right now?
Information Strategy and Technology Co (TSE:155A) has a current WACC % of 7.54%. The current WACC % is 7.54%, which is 15% above median its 10-year median of 6.56 and 16.6% below the Software industry median of 9.04. Information Strategy and Technology Co's overall GF Score™ is 18/100 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 Information Strategy and Technology Co (TSE:155A), the current WACC % is 7.54% 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.

Information Strategy and Technology Co Business Description

Address VORT Ebisu maxim 8F, 3-9-19 Higashi, Shibuya-ku, Tokyo, JPN, 150-0011
Information Strategy and Technology Co Ltd is a company that provides DX support services for large enterprises. It provides services such as 0th order DX it includes leading the customers DX to success through zero-order system development, and future matching which matches reliably with a company that has excellent engineers, who are rare and the competition for acquiring them is soaring, at the right time.
18GF Score

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