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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.
kaihan CoTSE:3133 +12.35%15 WACC % is 5.17% as of Jul. 14, 2026, which is 51% above its 10-year median of 3.42. GuruFocus rates TSE:3133 with a GF Score™ of 15/100 and a GF Value™ of 円693.87 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 364 Restaurants companies, kaihan Co ranks better than 52.47% on this metric.
As of today (2026-07-14), kaihan Co's weighted average cost of capital is 5.17%%. kaihan Co's ROIC % is -28.00% (calculated using TTM income statement data).
kaihan Co 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.
kaihan Co (TSE:3133) 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, kaihan Co's weighted average cost of capital is 5.17%%. kaihan Co's ROIC % is -28.00% (calculated using TTM income statement data).
kaihan Co 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
kaihan Co WACC % Historical Data
* Premium members only.
The historical data trend for kaihan 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.
For the Restaurants subindustry, kaihan 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.
kaihan Co WACC % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, kaihan Co's WACC % distribution charts can be found below:
* The bar in red indicates where kaihan Co'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, kaihan Co's market capitalization (E) is 円5679.836 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, kaihan Co's latest one-year semi-annual average Book Value of Debt (D) is 円2491.949 Mil.
a) weight of equity = E / (E + D) = 5679.836 / (5679.836 + 2491.949) = 0.6951
b) weight of debt = D / (E + D) = 2491.949 / (5679.836 + 2491.949) = 0.3049
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. kaihan Co's beta is 0.2479.
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% + 0.2479 * 6% = 4.1374%
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, kaihan Co's interest expense (positive number) was 円187.292 Mil. Its total Book Value of Debt (D) is 円2491.949 Mil.
Cost of Debt = 187.292 / 2491.949 = 7.5159%.
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 = 79.029 / -5062.516 = -1.56%, which is less than 0%. Therefore it's set to 0%.
kaihan 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)
=
0.6951
*
4.1374%
+
0.3049
*
7.5159%
*
(1 - 0%)
=
5.17%
* 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.
kaihan Co (TSE:3133) has a WACC % of 5.17% 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 kaihan Co and its competitors. This is 51% above median its historical median of 3.42. Over the past decade, kaihan Co's WACC % has ranged from 0.64 to 12.63. According to the industry distribution chart, kaihan Co ranks #173 out of 364 companies in the Restaurants industry, placing it in the top 47.5%.
Is kaihan Co's WACC % too high?
kaihan Co's current WACC % of 5.17% is 51% above median its 10-year median of 3.42. Over the past 10 years, this metric has ranged from a low of 0.64 to a high of 12.63. The Restaurants industry median WACC % is 5.49. kaihan Co's value of 5.17% is 5.8% below this industry median. Based on the distribution chart, kaihan Co ranks #173 out of 364 companies in the Restaurants industry, which is above the industry midpoint. Overall, kaihan Co has a GF Score™ of 15/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does kaihan Co's WACC % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, kaihan Co ranks #173 out of 364 companies for WACC %. This puts kaihan Co in the upper half of its industry. The industry median WACC % is 5.49. kaihan Co's value of 5.17% is 5.8% below this benchmark. Historically, kaihan Co's own WACC % has ranged from 0.64 to 12.63 over the past decade. While the company's 10-year median is 3.42 vs. the industry median of 5.49, kaihan 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 Restaurants company?
The median WACC % among Restaurants companies is 5.49, based on 364 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. kaihan Co's current WACC % of 5.17% is 5.8% 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 kaihan Co and its competitors. For the Restaurants industry, the median WACC % is 5.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. kaihan Co's current WACC % is 5.17%, which is 51% above median its own 10-year median of 3.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is kaihan Co stock overvalued right now?
Based on GuruFocus' analysis, kaihan Co (TSE:3133) is currently considered Possible Value Trap. The stock's GF Value™ is 円693.87, compared to a current price of 円91.00 — trading 86.9% below its estimated fair value. The current WACC % is 5.17%, which is 51% above median its 10-year median of 3.42 and 5.8% below the Restaurants industry median of 5.49. kaihan Co's overall GF Score™ is 15/100 with 6 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 kaihan Co (TSE:3133), the current WACC % is 5.17% 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 kaihan Co (TSE:3133) Overvalued in 2026?
Based on GuruFocus' analysis, kaihan Co stock appears to be undervalued.
The current stock price of 円91.00 is trading 86.9% below its estimated GF Value™ of 円693.87.
GuruFocus considers kaihan Co to be Possible Value Trap.
Key valuation signals for TSE:3133:
WACC %: 5.17% (51% above median its 10-year median of 3.42)
GF Value™: 円693.87 vs. price of 円91.00 (86.9% below fair value)
Industry Position: 5.8% below the Restaurants median (#173 of 364)
No single metric tells the full story. See the TSE:3133 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
kaihan Co Ltd is involved in the design, development, and operation of restaurants, including Japanese-style bars. The company is involved in the planning, development and operation of restaurants centering on Izakayas (Japanese pubs), such as Showa Shokudo, Ebisuya, and Osu 2-chome Sakaba, among others.
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