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Shibaura MechatronicsTSE:6590 +6.35%84 WACC % is 13.47% as of Jul. 21, 2026, which is 71% above its 10-year median of 7.86. GuruFocus rates TSE:6590 with a GF Score™ of 84/100 and a GF Value™ of 円2,253.21 (Significantly Overvalued). Among 2,516 Hardware companies, Shibaura Mechatronics ranks worse than 85.33% on this metric.
As of today (2026-07-21), Shibaura Mechatronics's weighted average cost of capital is 13.47%%. Shibaura Mechatronics's ROIC % is 19.12% (calculated using TTM income statement data).
Shibaura Mechatronics 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.
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, Shibaura Mechatronics's weighted average cost of capital is 13.47%%. Shibaura Mechatronics's ROIC % is 19.12% (calculated using TTM income statement data).
Shibaura Mechatronics 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.
* 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 Electronic Components subindustry, Shibaura Mechatronics'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.
Shibaura Mechatronics WACC % vs Hardware Industry
For the Hardware industry and Technology sector, Shibaura Mechatronics's WACC % distribution charts can be found below:
* The bar in red indicates where Shibaura Mechatronics'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, Shibaura Mechatronics's market capitalization (E) is 円351825.040 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, Shibaura Mechatronics's latest one-year quarterly average Book Value of Debt (D) is 円8693.6 Mil.
a) weight of equity = E / (E + D) = 351825.040 / (351825.040 + 8693.6) = 0.9759
b) weight of debt = D / (E + D) = 8693.6 / (351825.040 + 8693.6) = 0.0241
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. Shibaura Mechatronics's beta is 1.8506.
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% + 1.8506 * 6% = 13.7736%
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, Shibaura Mechatronics's interest expense (positive number) was 円117 Mil. Its total Book Value of Debt (D) is 円8693.6 Mil.
Cost of Debt = 117 / 8693.6 = 1.3458%.
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 = 3726 / 14900 = 25.01%.
Shibaura Mechatronics'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)
=
0.9759
*
13.7736%
+
0.0241
*
1.3458%
*
(1 - 25.01%)
=
13.47%
* 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.
Shibaura Mechatronics (TSE:6590) has a WACC % of 13.47% 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 Shibaura Mechatronics and its competitors. This is 71% above median its historical median of 7.86. Over the past decade, Shibaura Mechatronics' WACC % has ranged from 4.75 to 15.22. According to the industry distribution chart, Shibaura Mechatronics ranks #2147 out of 2516 companies in the Hardware industry, placing it in the top 85.3%.
Is Shibaura Mechatronics' WACC % too high?
Shibaura Mechatronics' current WACC % of 13.47% is 71% above median its 10-year median of 7.86. Over the past 10 years, this metric has ranged from a low of 4.75 to a high of 15.22. The Hardware industry median WACC % is 8.19. Shibaura Mechatronics' value of 13.47% is 64.5% above this industry median. Based on the distribution chart, Shibaura Mechatronics ranks #2147 out of 2516 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Shibaura Mechatronics has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shibaura Mechatronics' WACC % compare to APH and GLW?
According to the Hardware industry distribution chart, Shibaura Mechatronics ranks #2147 out of 2516 companies for WACC %. This places Shibaura Mechatronics in the lower half of its industry. The industry median WACC % is 8.19. Shibaura Mechatronics' value of 13.47% is 64.5% above this benchmark. Historically, Shibaura Mechatronics' own WACC % has ranged from 4.75 to 15.22 over the past decade. While the company's 10-year median is 7.86 vs. the industry median of 8.19, Shibaura Mechatronics has consistently been above 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. Shibaura Mechatronics's current WACC % of 13.47% is 64.5% above 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 Shibaura Mechatronics 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. Shibaura Mechatronics's current WACC % is 13.47%, which is 71% above median its own 10-year median of 7.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shibaura Mechatronics stock overvalued right now?
Based on GuruFocus' analysis, Shibaura Mechatronics (TSE:6590) is currently considered Significantly Overvalued. The stock's GF Value™ is 円2,253.21, compared to a current price of 円5,360.00 — trading 137.9% above its estimated fair value. The current WACC % is 13.47%, which is 71% above median its 10-year median of 7.86 and 64.5% above the Hardware industry median of 8.19. Shibaura Mechatronics' overall GF Score™ is 84/100. 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 Shibaura Mechatronics (TSE:6590), the current WACC % is 13.47% 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 Shibaura Mechatronics (TSE:6590) Overvalued in 2026?
Based on GuruFocus' analysis, Shibaura Mechatronics stock appears to be overvalued.
The current stock price of 円5,360.00 is trading 137.9% above its estimated GF Value™ of 円2,253.21.
GuruFocus considers Shibaura Mechatronics to be Significantly Overvalued.
Key valuation signals for TSE:6590:
WACC %: 13.47% (71% above median its 10-year median of 7.86)
GF Value™: 円2,253.21 vs. price of 円5,360.00 (137.9% above fair value)
Industry Position: 64.5% above the Hardware median (#2147 of 2516)
No single metric tells the full story. See the TSE:6590 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shibaura Mechatronics Corp is engaged in the manufacturing and sales of semiconductor manufacturing equipment, FPD manufacturing equipment, vacuum equipment, laser equipment, and ticket vending machines, as well as providing maintenance services and maintaining and upkeeping factory buildings and other facilities. The group's reportable segments are Fine Mechatronics, Mechatronics Systems, Distribution Equipment Systems, and Real Estate Leasing. The majority of its revenue is generated from the Fine Mechatronics segment, which manufactures semiconductor manufacturing equipment, FPD manufacturing equipment, inkjet tablet printing equipment, laser application equipment, microwave application equipment, vacuum pumps, etc.
84GF Score
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