Naigai TecTSE:3374 -0.62%77 WACC % is 6.36% as of Jul. 09, 2026, which is 1% above its 10-year median of 6.31. GuruFocus rates TSE:3374 with a GF Score™ of 77/100 and a GF Value™ of 円2,199.58 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 3,084 Industrial Products companies, Naigai Tec ranks better than 71.01% on this metric.
As of today (2026-07-09), Naigai Tec's weighted average cost of capital is 6.36%%. Naigai Tec's ROIC % is 7.32% (calculated using TTM income statement data).
Naigai Tec 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.
Naigai Tec (TSE:3374) 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, Naigai Tec's weighted average cost of capital is 6.36%%. Naigai Tec's ROIC % is 7.32% (calculated using TTM income statement data).
Naigai Tec 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
Naigai Tec WACC % Historical Data
* Premium members only.
The historical data trend for Naigai Tec'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 Electrical Equipment & Parts subindustry, Naigai Tec'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.
Naigai Tec WACC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Naigai Tec's WACC % distribution charts can be found below:
* The bar in red indicates where Naigai Tec'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, Naigai Tec's market capitalization (E) is 円11230.557 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, Naigai Tec's latest one-year semi-annual average Book Value of Debt (D) is 円3497.2253 Mil.
a) weight of equity = E / (E + D) = 11230.557 / (11230.557 + 3497.2253) = 0.7625
b) weight of debt = D / (E + D) = 3497.2253 / (11230.557 + 3497.2253) = 0.2375
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. Naigai Tec's beta is 0.8960.
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% + 0.8960 * 6% = 8.026%
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, Naigai Tec's interest expense (positive number) was 円51.36 Mil. Its total Book Value of Debt (D) is 円3497.2253 Mil.
Cost of Debt = 51.36 / 3497.2253 = 1.4686%.
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 = 420.786 / 1392.488 = 30.22%.
Naigai Tec'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)
=
0.7625
*
8.026%
+
0.2375
*
1.4686%
*
(1 - 30.22%)
=
6.36%
* 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.
Naigai Tec (TSE:3374) has a WACC % of 6.36% as of Jul. 09, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Naigai Tec and its competitors. This is near median its historical median of 6.31. Over the past decade, Naigai Tec's WACC % has ranged from 4.08 to 8.07. According to the industry distribution chart, Naigai Tec ranks #894 out of 3084 companies in the Industrial Products industry, placing it in the top 29%.
Is Naigai Tec's WACC % too high?
Naigai Tec's current WACC % of 6.36% is near median its 10-year median of 6.31. Over the past 10 years, this metric has ranged from a low of 4.08 to a high of 8.07. The Industrial Products industry median WACC % is 9.67. Naigai Tec's value of 6.36% is 34.2% below this industry median. Based on the distribution chart, Naigai Tec ranks #894 out of 3084 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Naigai Tec has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Naigai Tec's WACC % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Naigai Tec ranks #894 out of 3084 companies for WACC %. This puts Naigai Tec in the upper half of its industry. The industry median WACC % is 9.67. Naigai Tec's value of 6.36% is 34.2% below this benchmark. Historically, Naigai Tec's own WACC % has ranged from 4.08 to 8.07 over the past decade. While the company's 10-year median is 6.31 vs. the industry median of 9.67, Naigai Tec 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 an Industrial Products company?
The median WACC % among Industrial Products companies is 9.67, based on 3,084 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. Naigai Tec's current WACC % of 6.36% is 34.2% 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 Naigai Tec and its competitors. For the Industrial Products industry, the median WACC % is 9.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Naigai Tec's current WACC % is 6.36%, which is near median its own 10-year median of 6.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Naigai Tec stock overvalued right now?
Based on GuruFocus' analysis, Naigai Tec (TSE:3374) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,199.58, compared to a current price of 円3,210.00 — trading 45.9% above its estimated fair value. The current WACC % is 6.36%, which is near median its 10-year median of 6.31 and 34.2% below the Industrial Products industry median of 9.67. Naigai Tec's overall GF Score™ is 77/100 with 8 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 Naigai Tec (TSE:3374), the current WACC % is 6.36% as of Jul. 09, 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 Naigai Tec (TSE:3374) Overvalued in 2026?
Based on GuruFocus' analysis, Naigai Tec stock appears to be overvalued.
The current stock price of 円3,210.00 is trading 45.9% above its estimated GF Value™ of 円2,199.58.
GuruFocus considers Naigai Tec to be Significantly Overvalued.
Key valuation signals for TSE:3374:
WACC %: 6.36% (near median its 10-year median of 6.31)
GF Value™: 円2,199.58 vs. price of 円3,210.00 (45.9% above fair value)
Industry Position: 34.2% below the Industrial Products median (#894 of 3084)
No single metric tells the full story. See the TSE:3374 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Naigai Tec Corp is engaged in electronics parts design, manufacture, logistics, and after-sale service. It sales, purchase, import and export of pneumatic devices, pneumatic application devices, working machines, electric devices, electronic devices, and other tools. It provides its services to Japan, China, and South Korea. The reportable segments include: Sales business and Contract manufacturing business.
77GF Score
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