Business Evaluation Based on Cost of Capital
First written in FY2023. 7 of 9 entries say "Advanced", first in FY2024. Latest entry: 2026-11-06.
The whole theme swung hardest in 2021: 3 of 12 companies on the "Worse" side.
9 other companies' latest entry also says "Restated".
- FY2026AdvancedAnnual report
「Regarding investment projects, we recognize the importance of business evaluation with an awareness of the cost of capital. To clarify investment and financing decision criteria and exit criteria after conducting sufficient market research, business feasibility assessments and risk analyses, we will newly establish an Investment and Financing Committee.」
We gave concrete form to business evaluation based on the cost of capital by establishing an Investment and Financing Committee with investment and financing decision criteria and exit criteria. - FY2026-H1AdvancedAnnual report
「In preparation for the next medium-term management plan, we will consider an optimal capital structure together with our future capital investment plans and shareholder return policy, and strengthen management based on the cost of capital.」
Looking ahead to the next medium-term management plan, we indicated that we would consider an optimal capital structure together with capital investment and shareholder returns and strengthen management based on the cost of capital. - FY2025AdvancedAnnual report
「We estimate our cost of shareholders’ equity at 6–8%, while ROE has consistently exceeded this level, at 12.1% in fiscal 2023 (*) and 15.5% in fiscal 2024 (*). Going forward, the entire Group will work to improve ROE and reduce the cost of shareholders’ equity, with the aim of securing a positive equity spread.」
We estimated the cost of shareholders’ equity at 6–8% and reported that ROE had exceeded this level. We indicated a policy of considering capital profitability metrics and targets and an optimal capital structure in the next medium-term management plan. - FY2024AdvancedAnnual report
「In addition, toward achieving management that is conscious of the cost of capital and share prices, as requested by the Tokyo Stock Exchange for listed companies, we will seek to achieve the targets of our medium-term management plan and work to improve capital profitability.」
We clarified our policy on business evaluation based on the cost of capital as efforts to pursue management conscious of the cost of capital and share prices and to improve capital profitability. - FY2023First statedAnnual report
「We will work on clarifying our DX strategy, promptly strengthening our financial position, and evaluating businesses based on the cost of capital.」
As a measure to strengthen our management foundation, we explicitly identified business evaluation based on the cost of capital for the first time.