Hirano Tecseed CoTSE:6245 -0.06%68 WACC % is 4.95% as of Jul. 05, 2026, which is 10% below its 10-year median of 5.52. GuruFocus rates TSE:6245 with a GF Score™ of 68/100 and a GF Value™ of 円1,161.71 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 3,083 Industrial Products companies, Hirano Tecseed Co ranks better than 79.82% on this metric.
As of today (2026-07-05), Hirano Tecseed Co's weighted average cost of capital is 4.95%%. Hirano Tecseed Co's ROIC % is 3.08% (calculated using TTM income statement data).
Hirano Tecseed 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.
Hirano Tecseed Co (TSE:6245) 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, Hirano Tecseed Co's weighted average cost of capital is 4.95%%. Hirano Tecseed Co's ROIC % is 3.08% (calculated using TTM income statement data).
Hirano Tecseed 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 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
Hirano Tecseed Co WACC % Historical Data
* Premium members only.
The historical data trend for Hirano Tecseed 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 Industrial Machinery subindustry, Hirano Tecseed 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.
Hirano Tecseed Co WACC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hirano Tecseed Co's WACC % distribution charts can be found below:
* The bar in red indicates where Hirano Tecseed 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, Hirano Tecseed Co's market capitalization (E) is 円27323.864 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, Hirano Tecseed Co's latest one-year quarterly average Book Value of Debt (D) is 円5809.4054 Mil.
a) weight of equity = E / (E + D) = 27323.864 / (27323.864 + 5809.4054) = 0.8247
b) weight of debt = D / (E + D) = 5809.4054 / (27323.864 + 5809.4054) = 0.1753
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. Hirano Tecseed Co's beta is 0.5223.
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% + 0.5223 * 6% = 5.7838%
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, Hirano Tecseed Co's interest expense (positive number) was 円79.08 Mil. Its total Book Value of Debt (D) is 円5809.4054 Mil.
Cost of Debt = 79.08 / 5809.4054 = 1.3612%.
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 = 393.338 / 1706.764 = 23.05%.
Hirano Tecseed 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)
=
0.8247
*
5.7838%
+
0.1753
*
1.3612%
*
(1 - 23.05%)
=
4.95%
* 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.
Hirano Tecseed Co (TSE:6245) has a WACC % of 4.95% as of Jul. 05, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Hirano Tecseed Co and its competitors. This is 10% below median its historical median of 5.52. Over the past decade, Hirano Tecseed Co's WACC % has ranged from 3.31 to 10.63. According to the industry distribution chart, Hirano Tecseed Co ranks #622 out of 3083 companies in the Industrial Products industry, placing it in the top 20.2%.
Is Hirano Tecseed Co's WACC % too high?
Hirano Tecseed Co's current WACC % of 4.95% is 10% below median its 10-year median of 5.52. Over the past 10 years, this metric has ranged from a low of 3.31 to a high of 10.63. The Industrial Products industry median WACC % is 9.66. Hirano Tecseed Co's value of 4.95% is 48.8% below this industry median. Based on the distribution chart, Hirano Tecseed Co ranks #622 out of 3083 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Hirano Tecseed Co has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hirano Tecseed Co's WACC % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Hirano Tecseed Co ranks #622 out of 3083 companies for WACC %. This places Hirano Tecseed Co in the top 20% of its industry — outperforming the majority of peers. The industry median WACC % is 9.66. Hirano Tecseed Co's value of 4.95% is 48.8% below this benchmark. Historically, Hirano Tecseed Co's own WACC % has ranged from 3.31 to 10.63 over the past decade. While the company's 10-year median is 5.52 vs. the industry median of 9.66, Hirano Tecseed 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 an Industrial Products company?
The median WACC % among Industrial Products companies is 9.66, based on 3,083 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. Hirano Tecseed Co's current WACC % of 4.95% is 48.8% 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 Hirano Tecseed Co and its competitors. For the Industrial Products industry, the median WACC % is 9.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hirano Tecseed Co's current WACC % is 4.95%, which is 10% below median its own 10-year median of 5.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hirano Tecseed Co stock overvalued right now?
Based on GuruFocus' analysis, Hirano Tecseed Co (TSE:6245) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,161.71, compared to a current price of 円1,805.00 — trading 55.4% above its estimated fair value. The current WACC % is 4.95%, which is 10% below median its 10-year median of 5.52 and 48.8% below the Industrial Products industry median of 9.66. Hirano Tecseed Co's overall GF Score™ is 68/100 with 8 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 Hirano Tecseed Co (TSE:6245), the current WACC % is 4.95% as of Jul. 05, 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 Hirano Tecseed Co (TSE:6245) Overvalued in 2026?
Based on GuruFocus' analysis, Hirano Tecseed Co stock appears to be overvalued.
The current stock price of 円1,805.00 is trading 55.4% above its estimated GF Value™ of 円1,161.71.
GuruFocus considers Hirano Tecseed Co to be Significantly Overvalued.
Key valuation signals for TSE:6245:
WACC %: 4.95% (10% below median its 10-year median of 5.52)
GF Value™: 円1,161.71 vs. price of 円1,805.00 (55.4% above fair value)
Industry Position: 48.8% below the Industrial Products median (#622 of 3083)
No single metric tells the full story. See the TSE:6245 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hirano Tecseed Co Ltd is based in Japan. The company has three reportable segments: Coating Machine-Related Equipment, Chemical Machine-Related Equipment, and Other. The Coating Machine-Related Equipment segment manufactures and sells various coating and laminating equipment, as well as related drying and heat treatment equipment and line control systems. The Chemical Machine-Related Equipment segment manufactures and sells various film-forming equipment, nonwoven fabric, and high-performance fiber manufacturing equipment, flat panel coating and drying equipment, vacuum equipment-related systems, and associated drying, heat treatment, and line control equipment. The Other segment manufactures, repairs, and modifies dyeing and finishing machinery, as well as various equipment parts.
68GF Score
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