Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Asia Vital Components Co's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.49. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Asia Vital Components Co's Degree of Operating Leverage or its related term are showing as below:
AVMPF's Degree of Operating Leverage is ranked worse than 54.1% of 2442
companies
in the Hardware industry
Industry Median: 1.025
vs AVMPF: 1.49
Asia Vital Components Co (OTCPK:AVMPF) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Asia Vital Components Co Degree of Operating Leverage Related Terms
Asia Vital Components Co Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Asia Vital Components Co's Degree of Operating Leverage 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.
Asia Vital Components Co Degree of Operating Leverage Chart
AVMPF vs APH, GLW, TEL: Degree of Operating Leverage Comparison
For the Electronic Components subindustry, Asia Vital Components Co's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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.
Asia Vital Components Co Degree of Operating Leverage vs Hardware Industry
For the Hardware industry and Technology sector, Asia Vital Components Co's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Asia Vital Components Co's Degree of Operating Leverage falls into.
* 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.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 1.49 mean?
Asia Vital Components Co (AVMPF) has a Degree of Operating Leverage of 1.49 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Asia Vital Components Co and its competitors. According to the industry distribution chart, Asia Vital Components Co ranks #1321 out of 2442 companies in the Hardware industry, placing it in the top 54.1%.
Is Asia Vital Components Co's Degree of Operating Leverage too high?
Asia Vital Components Co's current Degree of Operating Leverage is 1.49. The Hardware industry median Degree of Operating Leverage is 1.03. Asia Vital Components Co's value of 1.49 is 45.4% above this industry median. Based on the distribution chart, Asia Vital Components Co ranks #1321 out of 2442 companies in the Hardware industry, which is below the industry midpoint. Overall, Asia Vital Components Co has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Asia Vital Components Co's Degree of Operating Leverage compare to APH and GLW?
According to the Hardware industry distribution chart, Asia Vital Components Co ranks #1321 out of 2442 companies for Degree of Operating Leverage. This places Asia Vital Components Co in the lower half of its industry. The industry median Degree of Operating Leverage is 1.03. Asia Vital Components Co's value of 1.49 is 45.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Hardware company?
The median Degree of Operating Leverage among Hardware companies is 1.03, based on 2,442 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Asia Vital Components Co's current Degree of Operating Leverage of 1.49 is 45.4% above 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 Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Asia Vital Components Co and its competitors. For the Hardware industry, the median Degree of Operating Leverage is 1.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Asia Vital Components Co's current Degree of Operating Leverage is 1.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asia Vital Components Co stock overvalued right now?
Asia Vital Components Co (AVMPF) has a current Degree of Operating Leverage of 1.49. The stock's GF Value™ is $13.68, compared to a current price of $21.88 — trading 59.9% above its estimated fair value. The current Degree of Operating Leverage is 1.49 and 45.4% above the Hardware industry median of 1.03. Asia Vital Components Co's overall GF Score™ is 80/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Asia Vital Components Co (AVMPF), the current Degree of Operating Leverage is 1.49 as of Jun. 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 Asia Vital Components Co (AVMPF) Overvalued in 2026?
Based on GuruFocus' analysis, Asia Vital Components Co stock appears to be overvalued.
The current stock price of $21.88 is trading 59.9% above its estimated GF Value™ of $13.68.
Key valuation signals for AVMPF:
Degree of Operating Leverage: 1.49
GF Value™: $13.68 vs. price of $21.88 (59.9% above fair value)
Industry Position: 45.4% above the Hardware median (#1321 of 2442)
No single metric tells the full story. See the AVMPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Asia Vital Components Co Ltd is a components manufacturer company. The principal activities of the company are to manufacture, process, assemble, import and export electronic parts, electronic materials, communication electronic machinery products, automobile parts, lighting devices, and computer peripherals. The company's product line includes Cooling Products, Fans & Blowers, Casing, Hinge, Camera Module, Touch Panel, and System Assembly and Comprehensive Machine Cooling Program. The group has two reportable operating segments: General management segment, which is responsible for the Group's operation planning and owns manufacturing, R&D and sales functions; and Overseas segment, that owns manufacturing and sales functions. Geographically, it operates in Asia, America, Europe and Others.
80GF Score
Get the complete analysis for AVMPF
Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
AVMPF has been successfully added to your 
