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As of today (2026-07-21), Riso Kyoiku Group's weighted average cost of capital is 1.95%%. Riso Kyoiku Group's ROIC % is 13.17% (calculated using TTM income statement data).
Riso Kyoiku Group 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.
Riso Kyoiku Group (TSE:4714) 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, Riso Kyoiku Group's weighted average cost of capital is 1.95%%. Riso Kyoiku Group's ROIC % is 13.17% (calculated using TTM income statement data).
Riso Kyoiku Group 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 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
Riso Kyoiku Group WACC % Historical Data
* Premium members only.
The historical data trend for Riso Kyoiku Group'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 Education & Training Services subindustry, Riso Kyoiku Group'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.
Riso Kyoiku Group WACC % vs Education Industry
For the Education industry and Consumer Defensive sector, Riso Kyoiku Group's WACC % distribution charts can be found below:
* The bar in red indicates where Riso Kyoiku Group'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, Riso Kyoiku Group's market capitalization (E) is 円33719.721 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 May. 2026, Riso Kyoiku Group's latest one-year quarterly average Book Value of Debt (D) is 円0 Mil.
a) weight of equity = E / (E + D) = 33719.721 / (33719.721 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (33719.721 + 0) = 0
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 2.67%. 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. Riso Kyoiku Group's beta is -0.1194.
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 = 2.67% + -0.1194 * 6% = 1.9536%
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 May. 2026, Riso Kyoiku Group's interest expense (positive number) was 円1.104 Mil. Its total Book Value of Debt (D) is 円0 Mil.
Cost of Debt = 1.104 / 0 = %.
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 = 1148.024 / 2981.867 = 38.5%.
Riso Kyoiku Group'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)
=
1
*
1.9536%
+
0
*
%
*
(1 - 38.5%)
=
1.95%
* 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.
Riso Kyoiku Group (TSE:4714) has a WACC % of 1.95% as of Jul. 21, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Riso Kyoiku Group and its competitors. According to the industry distribution chart, Riso Kyoiku Group ranks #19 out of 268 companies in the Education industry, placing it in the top 7.1%.
Is Riso Kyoiku Group's WACC % too high?
Riso Kyoiku Group's current WACC % is 1.95%. The Education industry median WACC % is 7.83. Riso Kyoiku Group's value of 1.95% is 75.1% below this industry median. Based on the distribution chart, Riso Kyoiku Group ranks #19 out of 268 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Riso Kyoiku Group has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Riso Kyoiku Group's WACC % compare to EDU and TAL?
According to the Education industry distribution chart, Riso Kyoiku Group ranks #19 out of 268 companies for WACC %. This places Riso Kyoiku Group in the top 7% of its industry — outperforming the majority of peers. The industry median WACC % is 7.83. Riso Kyoiku Group's value of 1.95% is 75.1% below this benchmark. 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 Education company?
The median WACC % among Education companies is 7.83, based on 268 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. Riso Kyoiku Group's current WACC % of 1.95% is 75.1% 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 Riso Kyoiku Group and its competitors. For the Education industry, the median WACC % is 7.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Riso Kyoiku Group's current WACC % is 1.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Riso Kyoiku Group stock overvalued right now?
Based on GuruFocus' analysis, Riso Kyoiku Group (TSE:4714) is currently considered Modestly Undervalued. The stock's GF Value™ is 円239.35, compared to a current price of 円198.00 — trading 17.3% below its estimated fair value. The current WACC % is 1.95% and 75.1% below the Education industry median of 7.83. Riso Kyoiku Group's overall GF Score™ is 82/100 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 Riso Kyoiku Group (TSE:4714), the current WACC % is 1.95% as of Jul. 21, 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 Riso Kyoiku Group (TSE:4714) Overvalued in 2026?
Based on GuruFocus' analysis, Riso Kyoiku Group stock appears to be undervalued.
The current stock price of 円198.00 is trading 17.3% below its estimated GF Value™ of 円239.35.
GuruFocus considers Riso Kyoiku Group to be Modestly Undervalued.
Key valuation signals for TSE:4714:
WACC %: 1.95%
GF Value™: 円239.35 vs. price of 円198.00 (17.3% below fair value)
Industry Position: 75.1% below the Education median (#19 of 268)
No single metric tells the full story. See the TSE:4714 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Riso Kyoiku Group Corp is a Japan-based company principally engaged in the provision of private education services. It operates cram schools (Juku) and provides academic tutoring and exam preparation on a one-on-one basis. The company's classes are for elementary, junior, and high school students. Geographically, the activities are carried out the region of Japan.
82GF Score
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