Narasakingyo Co (TSE:8085) WACC %:3.15% (As of Jul. 14, 2026) — Near Median

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Director of Data and Quant Analytics at GuruFocus
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Founder & CEO of GuruFocus
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TSE:8085 Narasaki Sangyo Co Ltd TSE:8085
77 GF Score
Price 円4,130.00
GF Value 円3,428.20
Valuation Modestly Overvalued
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What is Narasakingyo Co WACC %?

Narasakingyo Co TSE:8085 77 WACC % is 3.15% as of Jul. 14, 2026, which is 1% below its 10-year median of 3.18. GuruFocus rates TSE:8085 with a GF Score™ of 77/100 and a GF Value™ of 円3,428.20 (Modestly Overvalued). Among 160 Industrial Distribution companies, Narasakingyo Co ranks better than 88.75% on this metric.

As of today (2026-07-14), Narasakingyo Co's weighted average cost of capital is 3.15%%. Narasakingyo Co's ROIC % is 6.79% (calculated using TTM income statement data). Narasakingyo 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.


Narasakingyo Co  (TSE:8085) 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, Narasakingyo Co's weighted average cost of capital is 3.15%%. Narasakingyo Co's ROIC % is 6.79% (calculated using TTM income statement data). Narasakingyo 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

Narasakingyo Co WACC % Historical Data

* Premium members only.

The historical data trend for Narasakingyo 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.

Narasakingyo Co WACC % Chart

Narasakingyo Co Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
WACC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.70 1.76 4.87 5.02 4.33

Narasakingyo Co Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
WACC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.87 5.25 5.02 5.14 4.33

TSE:8085 vs GWW, FAST, FERG: WACC % Comparison

For the Industrial Distribution subindustry, Narasakingyo 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.


Narasakingyo Co WACC % vs Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Narasakingyo Co's WACC % distribution charts can be found below:

* The bar in red indicates where Narasakingyo Co's WACC % falls into.


TSE:8085
77GF Score
Narasaki Sangyo Co Ltd TSE:8085
WACC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Narasakingyo Co WACC % Calculation

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, Narasakingyo Co's market capitalization (E) is 円20666.945 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, Narasakingyo Co's latest one-year semi-annual average Book Value of Debt (D) is 円2314 Mil.
a) weight of equity = E / (E + D) = 20666.945 / (20666.945 + 2314) = 0.8993
b) weight of debt = D / (E + D) = 2314 / (20666.945 + 2314) = 0.1007

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. Narasakingyo Co's beta is 0.1151.
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% + 0.1151 * 6% = 3.3406%

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, Narasakingyo Co's interest expense (positive number) was 円49 Mil. Its total Book Value of Debt (D) is 円2314 Mil.
Cost of Debt = 49 / 2314 = 2.1175%.

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 = 1061 / 3341 = 31.76%.

Narasakingyo 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)
=0.8993*3.3406%+0.1007*2.1175%*(1 - 31.76%)
=3.15%

* 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.

Frequently Asked Questions Learn more about WACC % →
What does a WACC % of 3.15% mean?
Narasakingyo Co (TSE:8085) has a WACC % of 3.15% as of Jul. 14, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Narasakingyo Co and its competitors. This is near median its historical median of 3.18. Over the past decade, Narasakingyo Co's WACC % has ranged from 1.70 to 5.02. According to the industry distribution chart, Narasakingyo Co ranks #18 out of 160 companies in the Industrial Distribution industry, placing it in the top 11.2%.
Is Narasakingyo Co's WACC % too high?
Narasakingyo Co's current WACC % of 3.15% is near median its 10-year median of 3.18. Over the past 10 years, this metric has ranged from a low of 1.70 to a high of 5.02. The Industrial Distribution industry median WACC % is 6.94. Narasakingyo Co's value of 3.15% is 54.6% below this industry median. Based on the distribution chart, Narasakingyo Co ranks #18 out of 160 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Narasakingyo Co has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Narasakingyo Co's WACC % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Narasakingyo Co ranks #18 out of 160 companies for WACC %. This places Narasakingyo Co in the top 11% of its industry — outperforming the majority of peers. The industry median WACC % is 6.94. Narasakingyo Co's value of 3.15% is 54.6% below this benchmark. Historically, Narasakingyo Co's own WACC % has ranged from 1.70 to 5.02 over the past decade. While the company's 10-year median is 3.18 vs. the industry median of 6.94, Narasakingyo 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 Distribution company?
The median WACC % among Industrial Distribution companies is 6.94, based on 160 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. Narasakingyo Co's current WACC % of 3.15% is 54.6% 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 Narasakingyo Co and its competitors. For the Industrial Distribution industry, the median WACC % is 6.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Narasakingyo Co's current WACC % is 3.15%, which is near median its own 10-year median of 3.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Narasakingyo Co stock overvalued right now?
Based on GuruFocus' analysis, Narasakingyo Co (TSE:8085) is currently considered Modestly Overvalued. The stock's GF Value™ is 円3,428.20, compared to a current price of 円4,130.00 — trading 20.5% above its estimated fair value. The current WACC % is 3.15%, which is near median its 10-year median of 3.18 and 54.6% below the Industrial Distribution industry median of 6.94. Narasakingyo 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 Narasakingyo Co (TSE:8085), the current WACC % is 3.15% as of Jul. 14, 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 Narasakingyo Co (TSE:8085) Overvalued in 2026?

Based on GuruFocus' analysis, Narasakingyo Co stock appears to be overvalued. The current stock price of 円4,130.00 is trading 20.5% above its estimated GF Value™ of 円3,428.20. GuruFocus considers Narasakingyo Co to be Modestly Overvalued.

Key valuation signals for TSE:8085:

  • WACC %: 3.15% (near median its 10-year median of 3.18)
  • GF Value™: 円3,428.20 vs. price of 円4,130.00 (20.5% above fair value)
  • GF Score™: 77/100
  • Industry Position: 54.6% below the Industrial Distribution median (#18 of 160)

No single metric tells the full story. See the TSE:8085 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Narasakingyo Co Business Description

Address Presto 1.7 Buliduing, 7-1, Kitaichijo-Nishi, Chuo-ku, Sapporo, JPN, 060-0001
Narasaki Sangyo Co Ltd is primarily engaged in the sale of industrial equipment. The company operates principally in seven business divisions organized on the basis of product lines- Electric Machinery and Equipment, Building Equipment, FA And High-performance Materials, Industrial Equipment and Agricultural Implements, Construction Machinery, Construction Materials and Energy. The product range comprises factory automation components, optimal air conditioning and sanitation equipment, freezing and refrigerating equipment, elevators, power receiving/transforming facilities, and petroleum products to industry and households.
77GF Score

Get the complete analysis for TSE:8085

WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円4,130.00
Price
円3,428.20
GF Value