RaQualia PharmaTSE:4579 -2.70%57 WACC % is 1.53% as of Jul. 08, 2026, which is 75% below its 10-year median of 6.22. GuruFocus rates TSE:4579 with a GF Score™ of 57/100 and a GF Value™ of 円961.31 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,416 Biotechnology companies, RaQualia Pharma ranks better than 93.15% on this metric.
As of today (2026-07-08), RaQualia Pharma's weighted average cost of capital is 1.53%%. RaQualia Pharma's ROIC % is -6.83% (calculated using TTM income statement data).
RaQualia Pharma 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.
RaQualia Pharma (TSE:4579) 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, RaQualia Pharma's weighted average cost of capital is 1.53%%. RaQualia Pharma's ROIC % is -6.83% (calculated using TTM income statement data).
RaQualia Pharma 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 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
RaQualia Pharma WACC % Historical Data
* Premium members only.
The historical data trend for RaQualia Pharma'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 Biotechnology subindustry, RaQualia Pharma'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.
RaQualia Pharma WACC % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, RaQualia Pharma's WACC % distribution charts can be found below:
* The bar in red indicates where RaQualia Pharma'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, RaQualia Pharma's market capitalization (E) is 円12514.847 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, RaQualia Pharma's latest one-year quarterly average Book Value of Debt (D) is 円3058.0215 Mil.
a) weight of equity = E / (E + D) = 12514.847 / (12514.847 + 3058.0215) = 0.8036
b) weight of debt = D / (E + D) = 3058.0215 / (12514.847 + 3058.0215) = 0.1964
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. RaQualia Pharma's beta is -0.1796.
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% + -0.1796 * 6% = 1.5724%
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, RaQualia Pharma's interest expense (positive number) was 円41.152 Mil. Its total Book Value of Debt (D) is 円3058.0215 Mil.
Cost of Debt = 41.152 / 3058.0215 = 1.3457%.
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 = 127.82 / -639.144 = -20%, which is less than 0%. Therefore it's set to 0%.
RaQualia Pharma'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)
=
0.8036
*
1.5724%
+
0.1964
*
1.3457%
*
(1 - 0%)
=
1.53%
* 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.
RaQualia Pharma (TSE:4579) has a WACC % of 1.53% 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 RaQualia Pharma and its competitors. This is 75% below median its historical median of 6.22. Over the past decade, RaQualia Pharma's WACC % has ranged from 0.04 to 8.53. According to the industry distribution chart, RaQualia Pharma ranks #97 out of 1416 companies in the Biotechnology industry, placing it in the top 6.9%.
Is RaQualia Pharma's WACC % too high?
RaQualia Pharma's current WACC % of 1.53% is 75% below median its 10-year median of 6.22. Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 8.53. The Biotechnology industry median WACC % is 9.96. RaQualia Pharma's value of 1.53% is 84.6% below this industry median. Based on the distribution chart, RaQualia Pharma ranks #97 out of 1416 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, RaQualia Pharma has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does RaQualia Pharma's WACC % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, RaQualia Pharma ranks #97 out of 1416 companies for WACC %. This places RaQualia Pharma in the top 7% of its industry — outperforming the majority of peers. The industry median WACC % is 9.96. RaQualia Pharma's value of 1.53% is 84.6% below this benchmark. Historically, RaQualia Pharma's own WACC % has ranged from 0.04 to 8.53 over the past decade. While the company's 10-year median is 6.22 vs. the industry median of 9.96, RaQualia Pharma 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 Biotechnology company?
The median WACC % among Biotechnology companies is 9.96, based on 1,416 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. RaQualia Pharma's current WACC % of 1.53% is 84.6% 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 RaQualia Pharma and its competitors. For the Biotechnology industry, the median WACC % is 9.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RaQualia Pharma's current WACC % is 1.53%, which is 75% below median its own 10-year median of 6.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RaQualia Pharma stock overvalued right now?
Based on GuruFocus' analysis, RaQualia Pharma (TSE:4579) is currently considered Significantly Undervalued. The stock's GF Value™ is 円961.31, compared to a current price of 円468.00 — trading 51.3% below its estimated fair value. The current WACC % is 1.53%, which is 75% below median its 10-year median of 6.22 and 84.6% below the Biotechnology industry median of 9.96. RaQualia Pharma's overall GF Score™ is 57/100 with 3 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 RaQualia Pharma (TSE:4579), the current WACC % is 1.53% 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 RaQualia Pharma (TSE:4579) Overvalued in 2026?
Based on GuruFocus' analysis, RaQualia Pharma stock appears to be undervalued.
The current stock price of 円468.00 is trading 51.3% below its estimated GF Value™ of 円961.31.
GuruFocus considers RaQualia Pharma to be Significantly Undervalued.
Key valuation signals for TSE:4579:
WACC %: 1.53% (75% below median its 10-year median of 6.22)
GF Value™: 円961.31 vs. price of 円468.00 (51.3% below fair value)
Industry Position: 84.6% below the Biotechnology median (#97 of 1416)
No single metric tells the full story. See the TSE:4579 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RaQualia Pharma Inc operates as a research and development-centered biotechnology company, generating revenue by creating the seeds for novel medicine and licensing them to pharmaceutical companies. The company manages the Sales and licensing of intellectual property for fundamental technologies related to pharmaceutical compounds and candidate compounds for clinical development. Its product portfolio includes, Tegoprazan (K-CAB), Galliprant and Elura both under Veterinary Medicines. The pipeline products include Potassium-Competitive Acid Blocker, Ghrelin Receptor Agonist, TRPM8 Blocker and 5-HT4 Agonist studied under different phases of development.
57GF Score
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