ROYAL HOLDINGS CoTSE:8179 +1.71%75 WACC % is 2.43% as of Jul. 08, 2026, which is 28% below its 10-year median of 3.39. GuruFocus rates TSE:8179 with a GF Score™ of 75/100 and a GF Value™ of 円1,475.57 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 363 Restaurants companies, ROYAL HOLDINGS Co ranks better than 82.09% on this metric.
As of today (2026-07-08), ROYAL HOLDINGS Co's weighted average cost of capital is 2.43%%. ROYAL HOLDINGS Co's ROIC % is 6.27% (calculated using TTM income statement data).
ROYAL HOLDINGS 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.
ROYAL HOLDINGS Co (TSE:8179) 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, ROYAL HOLDINGS Co's weighted average cost of capital is 2.43%%. ROYAL HOLDINGS Co's ROIC % is 6.27% (calculated using TTM income statement data).
ROYAL HOLDINGS 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 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
ROYAL HOLDINGS Co WACC % Historical Data
* Premium members only.
The historical data trend for ROYAL HOLDINGS 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 Restaurants subindustry, ROYAL HOLDINGS 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.
ROYAL HOLDINGS Co WACC % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, ROYAL HOLDINGS Co's WACC % distribution charts can be found below:
* The bar in red indicates where ROYAL HOLDINGS 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, ROYAL HOLDINGS Co's market capitalization (E) is 円122959.879 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, ROYAL HOLDINGS Co's latest one-year quarterly average Book Value of Debt (D) is 円52800 Mil.
a) weight of equity = E / (E + D) = 122959.879 / (122959.879 + 52800) = 0.6996
b) weight of debt = D / (E + D) = 52800 / (122959.879 + 52800) = 0.3004
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. ROYAL HOLDINGS Co's beta is -0.0320.
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% + -0.0320 * 6% = 2.458%
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, ROYAL HOLDINGS Co's interest expense (positive number) was 円1248 Mil. Its total Book Value of Debt (D) is 円52800 Mil.
Cost of Debt = 1248 / 52800 = 2.3636%.
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 = -191 / 5600 = -3.41%, which is less than 0%. Therefore it's set to 0%.
ROYAL HOLDINGS 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)
=
0.6996
*
2.458%
+
0.3004
*
2.3636%
*
(1 - 0%)
=
2.43%
* 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.
ROYAL HOLDINGS Co (TSE:8179) has a WACC % of 2.43% as of Jul. 08, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on ROYAL HOLDINGS Co and its competitors. This is 28% below median its historical median of 3.39. Over the past decade, ROYAL HOLDINGS Co's WACC % has ranged from 1.45 to 4.59. According to the industry distribution chart, ROYAL HOLDINGS Co ranks #65 out of 363 companies in the Restaurants industry, placing it in the top 17.9%.
Is ROYAL HOLDINGS Co's WACC % too high?
ROYAL HOLDINGS Co's current WACC % of 2.43% is 28% below median its 10-year median of 3.39. Over the past 10 years, this metric has ranged from a low of 1.45 to a high of 4.59. The Restaurants industry median WACC % is 5.41. ROYAL HOLDINGS Co's value of 2.43% is 55.1% below this industry median. Based on the distribution chart, ROYAL HOLDINGS Co ranks #65 out of 363 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, ROYAL HOLDINGS Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ROYAL HOLDINGS Co's WACC % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, ROYAL HOLDINGS Co ranks #65 out of 363 companies for WACC %. This places ROYAL HOLDINGS Co in the top 18% of its industry — outperforming the majority of peers. The industry median WACC % is 5.41. ROYAL HOLDINGS Co's value of 2.43% is 55.1% below this benchmark. Historically, ROYAL HOLDINGS Co's own WACC % has ranged from 1.45 to 4.59 over the past decade. While the company's 10-year median is 3.39 vs. the industry median of 5.41, ROYAL HOLDINGS 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 Restaurants company?
The median WACC % among Restaurants companies is 5.41, based on 363 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. ROYAL HOLDINGS Co's current WACC % of 2.43% is 55.1% 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 ROYAL HOLDINGS Co and its competitors. For the Restaurants industry, the median WACC % is 5.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ROYAL HOLDINGS Co's current WACC % is 2.43%, which is 28% below median its own 10-year median of 3.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ROYAL HOLDINGS Co stock overvalued right now?
Based on GuruFocus' analysis, ROYAL HOLDINGS Co (TSE:8179) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,475.57, compared to a current price of 円1,248.00 — trading 15.4% below its estimated fair value. The current WACC % is 2.43%, which is 28% below median its 10-year median of 3.39 and 55.1% below the Restaurants industry median of 5.41. ROYAL HOLDINGS Co's overall GF Score™ is 75/100 with 2 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 ROYAL HOLDINGS Co (TSE:8179), the current WACC % is 2.43% as of Jul. 08, 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 ROYAL HOLDINGS Co (TSE:8179) Overvalued in 2026?
Based on GuruFocus' analysis, ROYAL HOLDINGS Co stock appears to be undervalued.
The current stock price of 円1,248.00 is trading 15.4% below its estimated GF Value™ of 円1,475.57.
GuruFocus considers ROYAL HOLDINGS Co to be Modestly Undervalued.
Key valuation signals for TSE:8179:
WACC %: 2.43% (28% below median its 10-year median of 3.39)
GF Value™: 円1,475.57 vs. price of 円1,248.00 (15.4% below fair value)
Industry Position: 55.1% below the Restaurants median (#65 of 363)
No single metric tells the full story. See the TSE:8179 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ROYAL HOLDINGS Co Ltd operates five core businesses in Japan: Restaurants, Hotels, Contract Food Services, In-Flight Catering, and Food Manufacturing. Royal's Restaurants business operates various brands, including Royal Host, Tenya, Cowboy Family, Shakey's, Sizzler, Hananoki, Royal Garden Cafe, pinkberry, The Third Cafe, and Rose Bakery. The company's Hotel business operates Richmond Hotels. Contract Food Services provides food in airports, highway service areas, department stores, and convention centers. In-Flight Catering provides meals for dozens of airlines all over the world. The Food Manufacturing business has two central kitchens in Japan that serve the company's other businesses. The group has four segments: restaurant business, contract business, Hotel Business, & Food Business.
75GF Score
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