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Find companies earning above their cost of capital

Lenders and shareholders expect a return on the money they provide: the cost of capital. A company earning more than that is creating value.

  • Whole company

    ROIC − WACC

    Does the business earn more than the cost of all its capital, including debt?

  • PBR

    Filter below 1

    Among companies trading below book value, find those earning above their cost of capital.

Price-to-book below 1 only

ROIC versus WACC

Showing 24 of 1,370 · Largest spread first

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About the figures on this page
  • Note: costs of capital (WACC and cost of equity) are estimates based on stated assumptions. Ordering by spread does not indicate investment priority.
  • ROIC = after-tax operating profit ÷ invested capital (interest-bearing debt + net assets including non-controlling interests, average of opening and closing), so both sides cover the whole group. WACC weights the cost of debt and cost of equity by the capital mix. Cost of equity uses CAPM (10-year JGB as the risk-free rate, Damodaran’s Japan market risk premium, adjusted beta). Financials and companies whose financing business cannot be separated are excluded.
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Reading the spread

  1. A positive spread means the company earns more than its cost of capital; a negative one means it falls short.
  2. Capital intensity differs by industry, so compare within a sector first.
  3. Don’t judge on one year: check in the trends whether ROIC and ROE stay high.

Coverage and cautions

Up to 24 Japanese companies with a computable spread are shown. Costs of capital are estimates that change with beta and interest-rate assumptions, so use them to compare companies under the same assumptions rather than as absolute values. Missing values are shown as —, never replaced with zero.

Definitions and assumptions are explained in the ROIC guide and WACC guide.

Help

Video guides

Short videos on what each page shows and how to read the metrics.

Companies shown are examples. Past figures and company policies do not guarantee future results. Not investment advice.

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