Sagami Rubber Industries CoTSE:5194 +0.95%49 WACC % is 2.08% as of Jul. 07, 2026, which is 4% below its 10-year median of 2.17. GuruFocus rates TSE:5194 with a GF Score™ of 49/100 and a GF Value™ of 円892.90 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,032 Consumer Packaged Goods companies, Sagami Rubber Industries Co ranks better than 93.75% on this metric.
As of today (2026-07-07), Sagami Rubber Industries Co's weighted average cost of capital is 2.08%%. Sagami Rubber Industries Co's ROIC % is 0.41% (calculated using TTM income statement data).
Sagami Rubber Industries Co 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.
Sagami Rubber Industries Co (TSE:5194) 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, Sagami Rubber Industries Co's weighted average cost of capital is 2.08%%. Sagami Rubber Industries Co's ROIC % is 0.41% (calculated using TTM income statement data).
Sagami Rubber Industries Co 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 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
Sagami Rubber Industries Co WACC % Historical Data
* 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 Household & Personal Products subindustry, Sagami Rubber Industries 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.
Sagami Rubber Industries Co WACC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Sagami Rubber Industries Co's WACC % distribution charts can be found below:
* The bar in red indicates where Sagami Rubber Industries 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, Sagami Rubber Industries Co's market capitalization (E) is 円6926.127 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, Sagami Rubber Industries Co's latest one-year semi-annual average Book Value of Debt (D) is 円5450.7867 Mil.
a) weight of equity = E / (E + D) = 6926.127 / (6926.127 + 5450.7867) = 0.5596
b) weight of debt = D / (E + D) = 5450.7867 / (6926.127 + 5450.7867) = 0.4404
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. Sagami Rubber Industries Co's beta is 0.0497.
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% + 0.0497 * 6% = 2.9482%
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, Sagami Rubber Industries Co's interest expense (positive number) was 円123.363 Mil. Its total Book Value of Debt (D) is 円5450.7867 Mil.
Cost of Debt = 123.363 / 5450.7867 = 2.2632%.
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 = 342.228 / 601.145 = 56.93%.
* 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.
Sagami Rubber Industries Co (TSE:5194) has a WACC % of 2.08% as of Jul. 07, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Sagami Rubber Industries Co and its competitors. This is near median its historical median of 2.17. According to the industry distribution chart, Sagami Rubber Industries Co ranks #127 out of 2032 companies in the Consumer Packaged Goods industry, placing it in the top 6.2%.
Is Sagami Rubber Industries Co's WACC % too high?
Sagami Rubber Industries Co's current WACC % of 2.08% is near median its 10-year median of 2.17. The Consumer Packaged Goods industry median WACC % is 7.63. Sagami Rubber Industries Co's value of 2.08% is 72.7% below this industry median. Based on the distribution chart, Sagami Rubber Industries Co ranks #127 out of 2032 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Sagami Rubber Industries Co has a GF Score™ of 49/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sagami Rubber Industries Co's WACC % compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, Sagami Rubber Industries Co ranks #127 out of 2032 companies for WACC %. This places Sagami Rubber Industries Co in the top 6% of its industry — outperforming the majority of peers. The industry median WACC % is 7.63. Sagami Rubber Industries Co's value of 2.08% is 72.7% below this benchmark. While the company's 10-year median is 2.17 vs. the industry median of 7.63, Sagami Rubber Industries 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 Consumer Packaged Goods company?
The median WACC % among Consumer Packaged Goods companies is 7.63, based on 2,032 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. Sagami Rubber Industries Co's current WACC % of 2.08% is 72.7% 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 Sagami Rubber Industries Co and its competitors. For the Consumer Packaged Goods industry, the median WACC % is 7.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sagami Rubber Industries Co's current WACC % is 2.08%, which is near median its own 10-year median of 2.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sagami Rubber Industries Co stock overvalued right now?
Based on GuruFocus' analysis, Sagami Rubber Industries Co (TSE:5194) is currently considered Modestly Undervalued. The stock's GF Value™ is 円892.90, compared to a current price of 円638.00 — trading 28.5% below its estimated fair value. The current WACC % is 2.08%, which is near median its 10-year median of 2.17 and 72.7% below the Consumer Packaged Goods industry median of 7.63. Sagami Rubber Industries Co's overall GF Score™ is 49/100 with 5 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 Sagami Rubber Industries Co (TSE:5194), the current WACC % is 2.08% as of Jul. 07, 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 Sagami Rubber Industries Co (TSE:5194) Overvalued in 2026?
Based on GuruFocus' analysis, Sagami Rubber Industries Co stock appears to be undervalued.
The current stock price of 円638.00 is trading 28.5% below its estimated GF Value™ of 円892.90.
GuruFocus considers Sagami Rubber Industries Co to be Modestly Undervalued.
Key valuation signals for TSE:5194:
WACC %: 2.08% (near median its 10-year median of 2.17)
GF Value™: 円892.90 vs. price of 円638.00 (28.5% below fair value)
Industry Position: 72.7% below the Consumer Packaged Goods median (#127 of 2032)
No single metric tells the full story. See the TSE:5194 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sagami Rubber Industries Co Ltd engages in the manufacture and sale of condoms, plastic films, and healthcare products. The Healthcare products include condoms, medical rubber products, and probe covers, External Catheters (Urosheaths). Plastic Products contains office files and food packaging films. It also offers bathing services and daily essentials.
49GF Score
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