Tokyo Communications GroupTSE:7359 +6.13%68 WACC % is 4.04% as of Jul. 02, 2026, which is 6% below its 10-year median of 4.29. GuruFocus rates TSE:7359 with a GF Score™ of 68/100 and a GF Value™ of 円496.38 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,042 Media - Diversified companies, Tokyo Communications Group ranks better than 79.56% on this metric.
As of today (2026-07-02), Tokyo Communications Group's weighted average cost of capital is 4.04%%. Tokyo Communications Group's ROIC % is 6.09% (calculated using TTM income statement data).
Tokyo Communications 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.
Tokyo Communications Group (TSE:7359) 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, Tokyo Communications Group's weighted average cost of capital is 4.04%%. Tokyo Communications Group's ROIC % is 6.09% (calculated using TTM income statement data).
Tokyo Communications 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 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.
* 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 Advertising Agencies subindustry, Tokyo Communications 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.
Tokyo Communications Group WACC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Tokyo Communications Group's WACC % distribution charts can be found below:
* The bar in red indicates where Tokyo Communications 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, Tokyo Communications Group's market capitalization (E) is 円2266.745 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 Dec. 2025, Tokyo Communications Group's latest one-year semi-annual average Book Value of Debt (D) is 円1760.843 Mil.
a) weight of equity = E / (E + D) = 2266.745 / (2266.745 + 1760.843) = 0.5628
b) weight of debt = D / (E + D) = 1760.843 / (2266.745 + 1760.843) = 0.4372
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. Tokyo Communications Group's beta is 0.5455.
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% + 0.5455 * 6% = 5.923%
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 Dec. 2025, Tokyo Communications Group's interest expense (positive number) was 円28.436 Mil. Its total Book Value of Debt (D) is 円1760.843 Mil.
Cost of Debt = 28.436 / 1760.843 = 1.6149%.
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 = -10.099 / 665.498 = -1.52%, which is less than 0%. Therefore it's set to 0%.
* 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.
Tokyo Communications Group (TSE:7359) has a WACC % of 4.04% as of Jul. 02, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Tokyo Communications Group and its competitors. This is near median its historical median of 4.29. Over the past decade, Tokyo Communications Group's WACC % has ranged from 0.29 to 6.02. According to the industry distribution chart, Tokyo Communications Group ranks #213 out of 1042 companies in the Media - Diversified industry, placing it in the top 20.4%.
Is Tokyo Communications Group's WACC % too high?
Tokyo Communications Group's current WACC % of 4.04% is near median its 10-year median of 4.29. Over the past 10 years, this metric has ranged from a low of 0.29 to a high of 6.02. The Media - Diversified industry median WACC % is 7.40. Tokyo Communications Group's value of 4.04% is 45.4% below this industry median. Based on the distribution chart, Tokyo Communications Group ranks #213 out of 1042 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Tokyo Communications Group has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tokyo Communications Group's WACC % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, Tokyo Communications Group ranks #213 out of 1042 companies for WACC %. This places Tokyo Communications Group in the top 20% of its industry — outperforming the majority of peers. The industry median WACC % is 7.40. Tokyo Communications Group's value of 4.04% is 45.4% below this benchmark. Historically, Tokyo Communications Group's own WACC % has ranged from 0.29 to 6.02 over the past decade. While the company's 10-year median is 4.29 vs. the industry median of 7.40, Tokyo Communications Group 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 Media - Diversified company?
The median WACC % among Media - Diversified companies is 7.40, based on 1,042 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. Tokyo Communications Group's current WACC % of 4.04% is 45.4% 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 Tokyo Communications Group and its competitors. For the Media - Diversified industry, the median WACC % is 7.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tokyo Communications Group's current WACC % is 4.04%, which is near median its own 10-year median of 4.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokyo Communications Group stock overvalued right now?
Based on GuruFocus' analysis, Tokyo Communications Group (TSE:7359) is currently considered Significantly Undervalued. The stock's GF Value™ is 円496.38, compared to a current price of 円225.00 — trading 54.7% below its estimated fair value. The current WACC % is 4.04%, which is near median its 10-year median of 4.29 and 45.4% below the Media - Diversified industry median of 7.40. Tokyo Communications Group's overall GF Score™ is 68/100 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 Tokyo Communications Group (TSE:7359), the current WACC % is 4.04% as of Jul. 02, 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 Tokyo Communications Group (TSE:7359) Overvalued in 2026?
Based on GuruFocus' analysis, Tokyo Communications Group stock appears to be undervalued.
The current stock price of 円225.00 is trading 54.7% below its estimated GF Value™ of 円496.38.
GuruFocus considers Tokyo Communications Group to be Significantly Undervalued.
Key valuation signals for TSE:7359:
WACC %: 4.04% (near median its 10-year median of 4.29)
GF Value™: 円496.38 vs. price of 円225.00 (54.7% below fair value)
Industry Position: 45.4% below the Media - Diversified median (#213 of 1042)
No single metric tells the full story. See the TSE:7359 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokyo Communications Group Inc is an IT marketing company engaged in two main areas: the application business and the advertising agency business. In the app segment, the company develops smartphone apps that generate advertising revenue. The advertising agency business focuses on affiliate-based internet advertising. The company operates through two key segments: the Media Business and the Platform Business. The Media Business earns revenue from advertisers through media management, development of free smartphone apps, and ad product sales using ad tech. The Platform Business operates communication services, health tech apps, and messaging apps, following monthly subscription or pay-as-you-go models tailored to user needs and market demands.
68GF Score
Get the complete analysis for TSE:7359
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:7359 has been successfully added to your 
