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Exeo GroupTSE:1951 -1.65%78 WACC % is 3.19% as of Jul. 16, 2026, which is 14% below its 10-year median of 3.69. GuruFocus rates TSE:1951 with a GF Score™ of 78/100 and a GF Value™ of 円2,114.75 (Modestly Overvalued). Among 1,809 Construction companies, Exeo Group ranks better than 86.07% on this metric.
As of today (2026-07-16), Exeo Group's weighted average cost of capital is 3.19%%. Exeo Group's ROIC % is 6.17% (calculated using TTM income statement data).
Exeo Group 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.
Exeo Group (TSE:1951) 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, Exeo Group's weighted average cost of capital is 3.19%%. Exeo Group's ROIC % is 6.17% (calculated using TTM income statement data).
Exeo Group 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
Exeo Group WACC % Historical Data
* Premium members only.
The historical data trend for Exeo Group'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 Engineering & Construction subindustry, Exeo Group'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.
Exeo Group WACC % vs Construction Industry
For the Construction industry and Industrials sector, Exeo Group's WACC % distribution charts can be found below:
* The bar in red indicates where Exeo Group'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, Exeo Group's market capitalization (E) is 円533037.207 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, Exeo Group's latest one-year quarterly average Book Value of Debt (D) is 円131739.8 Mil.
a) weight of equity = E / (E + D) = 533037.207 / (533037.207 + 131739.8) = 0.8018
b) weight of debt = D / (E + D) = 131739.8 / (533037.207 + 131739.8) = 0.1982
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. Exeo Group's beta is 0.1958.
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% + 0.1958 * 6% = 3.8248%
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, Exeo Group's interest expense (positive number) was 円1344 Mil. Its total Book Value of Debt (D) is 円131739.8 Mil.
Cost of Debt = 1344 / 131739.8 = 1.0202%.
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 = 20379 / 51355 = 39.68%.
Exeo Group'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)
=
0.8018
*
3.8248%
+
0.1982
*
1.0202%
*
(1 - 39.68%)
=
3.19%
* 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.
Exeo Group (TSE:1951) has a WACC % of 3.19% as of Jul. 16, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Exeo Group and its competitors. This is 14% below median its historical median of 3.69. Over the past decade, Exeo Group's WACC % has ranged from 1.53 to 5.06. According to the industry distribution chart, Exeo Group ranks #252 out of 1809 companies in the Construction industry, placing it in the top 13.9%.
Is Exeo Group's WACC % too high?
Exeo Group's current WACC % of 3.19% is 14% below median its 10-year median of 3.69. Over the past 10 years, this metric has ranged from a low of 1.53 to a high of 5.06. The Construction industry median WACC % is 7.75. Exeo Group's value of 3.19% is 58.8% below this industry median. Based on the distribution chart, Exeo Group ranks #252 out of 1809 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Exeo Group has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Exeo Group's WACC % compare to PWR and FIX?
According to the Construction industry distribution chart, Exeo Group ranks #252 out of 1809 companies for WACC %. This places Exeo Group in the top 14% of its industry — outperforming the majority of peers. The industry median WACC % is 7.75. Exeo Group's value of 3.19% is 58.8% below this benchmark. Historically, Exeo Group's own WACC % has ranged from 1.53 to 5.06 over the past decade. While the company's 10-year median is 3.69 vs. the industry median of 7.75, Exeo Group 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 7.75, based on 1,809 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. Exeo Group's current WACC % of 3.19% is 58.8% 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 Exeo Group and its competitors. For the Construction industry, the median WACC % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Exeo Group's current WACC % is 3.19%, which is 14% below median its own 10-year median of 3.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Exeo Group stock overvalued right now?
Based on GuruFocus' analysis, Exeo Group (TSE:1951) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,114.75, compared to a current price of 円2,623.00 — trading 24% above its estimated fair value. The current WACC % is 3.19%, which is 14% below median its 10-year median of 3.69 and 58.8% below the Construction industry median of 7.75. Exeo Group's overall GF Score™ is 78/100. 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 Exeo Group (TSE:1951), the current WACC % is 3.19% as of Jul. 16, 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 Exeo Group (TSE:1951) Overvalued in 2026?
Based on GuruFocus' analysis, Exeo Group stock appears to be overvalued.
The current stock price of 円2,623.00 is trading 24% above its estimated GF Value™ of 円2,114.75.
GuruFocus considers Exeo Group to be Modestly Overvalued.
Key valuation signals for TSE:1951:
WACC %: 3.19% (14% below median its 10-year median of 3.69)
GF Value™: 円2,114.75 vs. price of 円2,623.00 (24% above fair value)
Industry Position: 58.8% below the Construction median (#252 of 1809)
No single metric tells the full story. See the TSE:1951 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Exeo Group Inc provides technological and construction solutions, products, and services for various end markets. It builds telecommunications infrastructure throughout Japan to strengthen connectivity and communication. The company develops information and communication facilities and increases the security and capacity for storage of data and software. In addition, the company installs and repairs electrical and air conditioning components for commercial and residential buildings and develops energy-related facilities for solar, water, and other renewable solutions. It builds network systems for corporations or private homes and offers consulting on the latest technology and solutions geared toward customers' management issues.
78GF Score
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