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Mk Seiko CoTSE:5906 -1.71%77 WACC % is 4.62% as of Jul. 19, 2026, which is 66% above its 10-year median of 2.79. GuruFocus rates TSE:5906 with a GF Score™ of 77/100 and a GF Value™ of 円484.08 (Significantly Overvalued). Among 2,516 Hardware companies, Mk Seiko Co ranks better than 73.57% on this metric.
As of today (2026-07-19), Mk Seiko Co's weighted average cost of capital is 4.62%%. Mk Seiko Co's ROIC % is 10.95% (calculated using TTM income statement data).
Mk Seiko 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.
Mk Seiko Co (TSE:5906) 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, Mk Seiko Co's weighted average cost of capital is 4.62%%. Mk Seiko Co's ROIC % is 10.95% (calculated using TTM income statement data).
Mk Seiko 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
Mk Seiko Co WACC % Historical Data
* Premium members only.
The historical data trend for Mk Seiko 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 Consumer Electronics subindustry, Mk Seiko 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.
Mk Seiko Co WACC % vs Hardware Industry
For the Hardware industry and Technology sector, Mk Seiko Co's WACC % distribution charts can be found below:
* The bar in red indicates where Mk Seiko 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, Mk Seiko Co's market capitalization (E) is 円11196.313 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, Mk Seiko Co's latest one-year semi-annual average Book Value of Debt (D) is 円3965.5817 Mil.
a) weight of equity = E / (E + D) = 11196.313 / (11196.313 + 3965.5817) = 0.7385
b) weight of debt = D / (E + D) = 3965.5817 / (11196.313 + 3965.5817) = 0.2615
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. Mk Seiko Co's beta is 0.5613.
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% + 0.5613 * 6% = 6.0378%
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, Mk Seiko Co's interest expense (positive number) was 円31.518 Mil. Its total Book Value of Debt (D) is 円3965.5817 Mil.
Cost of Debt = 31.518 / 3965.5817 = 0.7948%.
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 = 761.778 / 3116.054 = 24.45%.
Mk Seiko 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)
=
0.7385
*
6.0378%
+
0.2615
*
0.7948%
*
(1 - 24.45%)
=
4.62%
* 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.
Mk Seiko Co (TSE:5906) has a WACC % of 4.62% as of Jul. 19, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Mk Seiko Co and its competitors. This is 66% above median its historical median of 2.79. Over the past decade, Mk Seiko Co's WACC % has ranged from 1.09 to 5.18. According to the industry distribution chart, Mk Seiko Co ranks #665 out of 2516 companies in the Hardware industry, placing it in the top 26.4%.
Is Mk Seiko Co's WACC % too high?
Mk Seiko Co's current WACC % of 4.62% is 66% above median its 10-year median of 2.79. Over the past 10 years, this metric has ranged from a low of 1.09 to a high of 5.18. The Hardware industry median WACC % is 8.19. Mk Seiko Co's value of 4.62% is 43.6% below this industry median. Based on the distribution chart, Mk Seiko Co ranks #665 out of 2516 companies in the Hardware industry, which is above the industry midpoint. Overall, Mk Seiko Co has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mk Seiko Co's WACC % compare to AAPL?
According to the Hardware industry distribution chart, Mk Seiko Co ranks #665 out of 2516 companies for WACC %. This puts Mk Seiko Co in the upper half of its industry. The industry median WACC % is 8.19. Mk Seiko Co's value of 4.62% is 43.6% below this benchmark. Historically, Mk Seiko Co's own WACC % has ranged from 1.09 to 5.18 over the past decade. While the company's 10-year median is 2.79 vs. the industry median of 8.19, Mk Seiko 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 Hardware company?
The median WACC % among Hardware companies is 8.19, based on 2,516 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. Mk Seiko Co's current WACC % of 4.62% is 43.6% 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 Mk Seiko Co and its competitors. For the Hardware industry, the median WACC % is 8.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mk Seiko Co's current WACC % is 4.62%, which is 66% above median its own 10-year median of 2.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mk Seiko Co stock overvalued right now?
Based on GuruFocus' analysis, Mk Seiko Co (TSE:5906) is currently considered Significantly Overvalued. The stock's GF Value™ is 円484.08, compared to a current price of 円804.00 — trading 66.1% above its estimated fair value. The current WACC % is 4.62%, which is 66% above median its 10-year median of 2.79 and 43.6% below the Hardware industry median of 8.19. Mk Seiko Co's overall GF Score™ is 77/100. 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 Mk Seiko Co (TSE:5906), the current WACC % is 4.62% as of Jul. 19, 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 Mk Seiko Co (TSE:5906) Overvalued in 2026?
Based on GuruFocus' analysis, Mk Seiko Co stock appears to be overvalued.
The current stock price of 円804.00 is trading 66.1% above its estimated GF Value™ of 円484.08.
GuruFocus considers Mk Seiko Co to be Significantly Overvalued.
Key valuation signals for TSE:5906:
WACC %: 4.62% (66% above median its 10-year median of 2.79)
GF Value™: 円484.08 vs. price of 円804.00 (66.1% above fair value)
Industry Position: 43.6% below the Hardware median (#665 of 2516)
No single metric tells the full story. See the TSE:5906 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mk Seiko Co Ltd is a Japanese manufacturer and seller of automotive service equipment, information equipment and household equipment. In automotive service equipment, the company offers car washing machines, freon cleaning and charging machines and others. It offers information equipment like large screen televisions for outside and auditoriums, road information equipment and color display equipment for shops. The household products offered by the company are low-temperature farm product storage, bread makers and oil supply pumps.
77GF Score
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