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Formosa Advanced Technologies CoTPE:8131 -5.67%69 Return-on-Tangible-Equity is 13.90% as of Dec. 2025, which is 20% above its 10-year median of 11.58. GuruFocus rates TPE:8131 with a GF Score™ of 69/100 and a GF Value™ of NT$47.59 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 985 Semiconductors companies, Formosa Advanced Technologies Co ranks better than 51.37% on this metric.
The historical rank and industry rank for Formosa Advanced Technologies Co's Return-on-Tangible-Equity or its related term are showing as below:
TPE:8131'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.33 Med: 11.58 Max: 16.43
Current: 5.51
During the past 13 years, Formosa Advanced Technologies Co's highest Return-on-Tangible-Equity was 16.43%. The lowest was 4.33%. And the median was 11.58%.
TPE:8131's Return-on-Tangible-Equity is ranked better than 51.37% of 985
companies
in the Semiconductors industry
Industry Median: 5.24
vs TPE:8131: 5.51
Formosa Advanced Technologies Co (TPE:8131) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Formosa Advanced Technologies Co Return-on-Tangible-Equity Related Terms
Formosa Advanced Technologies Co Return-on-Tangible-Equity Historical Data
* 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.
Formosa Advanced Technologies Co Return-on-Tangible-Equity Chart
TPE:8131 vs NVDA, AVGO, MU: Return-on-Tangible-Equity Comparison
For the Semiconductors subindustry, Formosa Advanced Technologies Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Formosa Advanced Technologies Co Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Formosa Advanced Technologies Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Formosa Advanced Technologies Co's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 13.90% mean?
Formosa Advanced Technologies Co (TPE:8131) has a Return-on-Tangible-Equity of 13.90% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Formosa Advanced Technologies Co and its competitors. This is 20% above median its historical median of 11.58. Over the past decade, Formosa Advanced Technologies Co's Return-on-Tangible-Equity has ranged from 4.33 to 16.43. According to the industry distribution chart, Formosa Advanced Technologies Co ranks #479 out of 985 companies in the Semiconductors industry, placing it in the top 48.6%.
Is Formosa Advanced Technologies Co's Return-on-Tangible-Equity too high?
Formosa Advanced Technologies Co's current Return-on-Tangible-Equity of 13.90% is 20% above median its 10-year median of 11.58. Over the past 10 years, this metric has ranged from a low of 4.33 to a high of 16.43. The Semiconductors industry median Return-on-Tangible-Equity is 5.24. Formosa Advanced Technologies Co's value of 13.90% is 165.3% above this industry median. Based on the distribution chart, Formosa Advanced Technologies Co ranks #479 out of 985 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Formosa Advanced Technologies Co has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Advanced Technologies Co's Return-on-Tangible-Equity compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Formosa Advanced Technologies Co ranks #479 out of 985 companies for Return-on-Tangible-Equity. This puts Formosa Advanced Technologies Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.24. Formosa Advanced Technologies Co's value of 13.90% is 165.3% above this benchmark. Historically, Formosa Advanced Technologies Co's own Return-on-Tangible-Equity has ranged from 4.33 to 16.43 over the past decade. While the company's 10-year median is 11.58 vs. the industry median of 5.24, Formosa Advanced Technologies Co has consistently been above 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 Return-on-Tangible-Equity for a Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.24, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosa Advanced Technologies Co's current Return-on-Tangible-Equity of 13.90% is 165.3% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Formosa Advanced Technologies Co and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Advanced Technologies Co's current Return-on-Tangible-Equity is 13.90%, which is 20% above median its own 10-year median of 11.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Advanced Technologies Co stock overvalued right now?
Based on GuruFocus' analysis, Formosa Advanced Technologies Co (TPE:8131) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$47.59, compared to a current price of NT$76.60 — trading 61% above its estimated fair value. The current Return-on-Tangible-Equity is 13.90%, which is 20% above median its 10-year median of 11.58 and 165.3% above the Semiconductors industry median of 5.24. Formosa Advanced Technologies Co's overall GF Score™ is 69/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Formosa Advanced Technologies Co (TPE:8131), the current Return-on-Tangible-Equity is 13.90% as of Dec. 2025. 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 Formosa Advanced Technologies Co (TPE:8131) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Advanced Technologies Co stock appears to be overvalued.
The current stock price of NT$76.60 is trading 61% above its estimated GF Value™ of NT$47.59.
GuruFocus considers Formosa Advanced Technologies Co to be Significantly Overvalued.
Key valuation signals for TPE:8131:
Return-on-Tangible-Equity: 13.90% (20% above median its 10-year median of 11.58)
GF Value™: NT$47.59 vs. price of NT$76.60 (61% above fair value)
Industry Position: 165.3% above the Semiconductors median (#479 of 985)
No single metric tells the full story. See the TPE:8131 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Advanced Technologies Co Business Description
Formosa Advanced Technologies Co Ltd is a professional manufacturer of DRAM assembly, testing, and module Turn-Key service in Taiwan. The group's business activity is operated in Taiwan, the USA, China, Korea, Mainland China, and Others. The company's operating segment includes the integrated-chips ("IC" ) department and the module department. The integrated-chips department includes packaging, testing, processing, and research and development of integrated chips. The module department includes the assembly, testing, and research and development of module pieces.
69GF Score
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