Nihon Kagakungyo CoTSE:4094 -0.57%63 WACC % is 2.7% as of Jul. 08, 2026, which is 6% above its 10-year median of 2.55. GuruFocus rates TSE:4094 with a GF Score™ of 63/100 and a GF Value™ of 円1,857.32 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,627 Chemicals companies, Nihon Kagakungyo Co ranks better than 94.65% on this metric.
As of today (2026-07-08), Nihon Kagakungyo Co's weighted average cost of capital is 2.7%%. Nihon Kagakungyo Co's ROIC % is 6.59% (calculated using TTM income statement data).
Nihon Kagakungyo 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.
Nihon Kagakungyo Co (TSE:4094) 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, Nihon Kagakungyo Co's weighted average cost of capital is 2.7%%. Nihon Kagakungyo Co's ROIC % is 6.59% (calculated using TTM income statement data).
Nihon Kagakungyo 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
Nihon Kagakungyo Co WACC % Historical Data
* Premium members only.
The historical data trend for Nihon Kagakungyo 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 Specialty Chemicals subindustry, Nihon Kagakungyo 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.
Nihon Kagakungyo Co WACC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nihon Kagakungyo Co's WACC % distribution charts can be found below:
* The bar in red indicates where Nihon Kagakungyo 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, Nihon Kagakungyo Co's market capitalization (E) is 円40653.584 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, Nihon Kagakungyo Co's latest one-year semi-annual average Book Value of Debt (D) is 円171.9 Mil.
a) weight of equity = E / (E + D) = 40653.584 / (40653.584 + 171.9) = 0.9958
b) weight of debt = D / (E + D) = 171.9 / (40653.584 + 171.9) = 0.0042
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. Nihon Kagakungyo Co's beta is 0.0102.
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% + 0.0102 * 6% = 2.7112%
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, Nihon Kagakungyo Co's interest expense (positive number) was 円1.019 Mil. Its total Book Value of Debt (D) is 円171.9 Mil.
Cost of Debt = 1.019 / 171.9 = 0.5928%.
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 = 1053.805 / 3335.642 = 31.59%.
Nihon Kagakungyo 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)
=
0.9958
*
2.7112%
+
0.0042
*
0.5928%
*
(1 - 31.59%)
=
2.7%
* 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.
Nihon Kagakungyo Co (TSE:4094) has a WACC % of 2.7% as of Jul. 08, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Nihon Kagakungyo Co and its competitors. This is near median its historical median of 2.55. Over the past decade, Nihon Kagakungyo Co's WACC % has ranged from 1.82 to 3.87. According to the industry distribution chart, Nihon Kagakungyo Co ranks #87 out of 1627 companies in the Chemicals industry, placing it in the top 5.3%.
Is Nihon Kagakungyo Co's WACC % too high?
Nihon Kagakungyo Co's current WACC % of 2.7% is near median its 10-year median of 2.55. Over the past 10 years, this metric has ranged from a low of 1.82 to a high of 3.87. The Chemicals industry median WACC % is 9.19. Nihon Kagakungyo Co's value of 2.7% is 70.6% below this industry median. Based on the distribution chart, Nihon Kagakungyo Co ranks #87 out of 1627 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Nihon Kagakungyo Co has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nihon Kagakungyo Co's WACC % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Nihon Kagakungyo Co ranks #87 out of 1627 companies for WACC %. This places Nihon Kagakungyo Co in the top 5% of its industry — outperforming the majority of peers. The industry median WACC % is 9.19. Nihon Kagakungyo Co's value of 2.7% is 70.6% below this benchmark. Historically, Nihon Kagakungyo Co's own WACC % has ranged from 1.82 to 3.87 over the past decade. While the company's 10-year median is 2.55 vs. the industry median of 9.19, Nihon Kagakungyo 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 Chemicals company?
The median WACC % among Chemicals companies is 9.19, based on 1,627 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. Nihon Kagakungyo Co's current WACC % of 2.7% is 70.6% 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 Nihon Kagakungyo Co and its competitors. For the Chemicals industry, the median WACC % is 9.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nihon Kagakungyo Co's current WACC % is 2.7%, which is near median its own 10-year median of 2.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nihon Kagakungyo Co stock overvalued right now?
Based on GuruFocus' analysis, Nihon Kagakungyo Co (TSE:4094) is currently considered Modestly Overvalued. The stock's GF Value™ is 円1,857.32, compared to a current price of 円2,089.00 — trading 12.5% above its estimated fair value. The current WACC % is 2.7%, which is near median its 10-year median of 2.55 and 70.6% below the Chemicals industry median of 9.19. Nihon Kagakungyo Co's overall GF Score™ is 63/100 with 2 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 Nihon Kagakungyo Co (TSE:4094), the current WACC % is 2.7% as of Jul. 08, 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 Nihon Kagakungyo Co (TSE:4094) Overvalued in 2026?
Based on GuruFocus' analysis, Nihon Kagakungyo Co stock appears to be overvalued.
The current stock price of 円2,089.00 is trading 12.5% above its estimated GF Value™ of 円1,857.32.
GuruFocus considers Nihon Kagakungyo Co to be Modestly Overvalued.
Key valuation signals for TSE:4094:
WACC %: 2.7% (near median its 10-year median of 2.55)
GF Value™: 円1,857.32 vs. price of 円2,089.00 (12.5% above fair value)
Industry Position: 70.6% below the Chemicals median (#87 of 1627)
No single metric tells the full story. See the TSE:4094 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nihon Kagaku Sangyo Co Ltd is a Japan-based chemical manufacturer. Its business activities are divided into two divisions including Chemical business which is engaged in production and sales of organic and inorganic industrial chemicals. And Building Materials business which offers metal products. Its chemical product offerings include copper compounds, tin compounds, nickel compounds, cobalt compounds, metallic soaps, among others. The building materials division offers products including plancier air vent, nent roof, finish hardware, mail post, approach stainless steel, handrails, heat exchanger, metal eaves fascia and cold rolling forming hardware.
63GF Score
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