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Densan CoTSE:3640 +2.29%69 WACC % is 2.96% as of Jul. 14, 2026, which is 67% above its 10-year median of 1.77. GuruFocus rates TSE:3640 with a GF Score™ of 69/100 and a GF Value™ of 円2,525.98 (Fairly Valued). Among 1,031 Semiconductors companies, Densan Co ranks better than 89.43% on this metric.
As of today (2026-07-14), Densan Co's weighted average cost of capital is 2.96%%. Densan Co's ROIC % is 28.06% (calculated using TTM income statement data).
Densan 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.
Densan Co (TSE:3640) 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, Densan Co's weighted average cost of capital is 2.96%%. Densan Co's ROIC % is 28.06% (calculated using TTM income statement data).
Densan 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
Densan Co WACC % Historical Data
* Premium members only.
The historical data trend for Densan 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 Semiconductors subindustry, Densan 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.
Densan Co WACC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Densan Co's WACC % distribution charts can be found below:
* The bar in red indicates where Densan 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, Densan Co's market capitalization (E) is 円13097.209 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, Densan Co's latest one-year semi-annual average Book Value of Debt (D) is 円2697.4677 Mil.
a) weight of equity = E / (E + D) = 13097.209 / (13097.209 + 2697.4677) = 0.8292
b) weight of debt = D / (E + D) = 2697.4677 / (13097.209 + 2697.4677) = 0.1708
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. Densan Co's beta is 0.1358.
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% + 0.1358 * 6% = 3.4648%
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, Densan Co's interest expense (positive number) was 円19.45 Mil. Its total Book Value of Debt (D) is 円2697.4677 Mil.
Cost of Debt = 19.45 / 2697.4677 = 0.721%.
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 = 1829.158 / 6307.427 = 29%.
Densan 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)
=
0.8292
*
3.4648%
+
0.1708
*
0.721%
*
(1 - 29%)
=
2.96%
* 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.
Densan Co (TSE:3640) has a WACC % of 2.96% 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 Densan Co and its competitors. This is 67% above median its historical median of 1.77. Over the past decade, Densan Co's WACC % has ranged from 0.89 to 4.35. According to the industry distribution chart, Densan Co ranks #109 out of 1031 companies in the Semiconductors industry, placing it in the top 10.6%.
Is Densan Co's WACC % too high?
Densan Co's current WACC % of 2.96% is 67% above median its 10-year median of 1.77. Over the past 10 years, this metric has ranged from a low of 0.89 to a high of 4.35. The Semiconductors industry median WACC % is 9.38. Densan Co's value of 2.96% is 68.4% below this industry median. Based on the distribution chart, Densan Co ranks #109 out of 1031 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Densan Co has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Densan Co's WACC % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Densan Co ranks #109 out of 1031 companies for WACC %. This places Densan Co in the top 11% of its industry — outperforming the majority of peers. The industry median WACC % is 9.38. Densan Co's value of 2.96% is 68.4% below this benchmark. Historically, Densan Co's own WACC % has ranged from 0.89 to 4.35 over the past decade. While the company's 10-year median is 1.77 vs. the industry median of 9.38, Densan 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 Semiconductors company?
The median WACC % among Semiconductors companies is 9.38, based on 1,031 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. Densan Co's current WACC % of 2.96% is 68.4% 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 Densan Co and its competitors. For the Semiconductors industry, the median WACC % is 9.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Densan Co's current WACC % is 2.96%, which is 67% above median its own 10-year median of 1.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Densan Co stock overvalued right now?
Based on GuruFocus' analysis, Densan Co (TSE:3640) is currently considered Fairly Valued. The stock's GF Value™ is 円2,525.98, compared to a current price of 円2,414.00 — trading 4.4% below its estimated fair value. The current WACC % is 2.96%, which is 67% above median its 10-year median of 1.77 and 68.4% below the Semiconductors industry median of 9.38. Densan Co's overall GF Score™ is 69/100. 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 Densan Co (TSE:3640), the current WACC % is 2.96% 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 Densan Co (TSE:3640) Overvalued in 2026?
Based on GuruFocus' analysis, Densan Co stock appears to be undervalued.
The current stock price of 円2,414.00 is trading 4.4% below its estimated GF Value™ of 円2,525.98.
GuruFocus considers Densan Co to be Fairly Valued.
Key valuation signals for TSE:3640:
WACC %: 2.96% (67% above median its 10-year median of 1.77)
GF Value™: 円2,525.98 vs. price of 円2,414.00 (4.4% below fair value)
Industry Position: 68.4% below the Semiconductors median (#109 of 1031)
No single metric tells the full story. See the TSE:3640 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Densan Co Ltd is engaged in the development and provision of information systems and related services. Its reporting segments include the Public Sector and the Industrial Sector. In the Public Sector, it serves local governments and related organizations by developing, selling, and supporting package systems, as well as offering equipment sales and information processing services. The Industrial Sector focuses on private enterprises and medical and welfare institutions, offering software development, equipment sales, and various information services. It also includes internet connectivity services for general consumers. It generates the majority of its revenue from the Public Sector segment.
69GF Score
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