ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Chunghwa Telecom Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 9.32%.
As of today (2026-06-25), Chunghwa Telecom Co's WACC % is 4.72%. Chunghwa Telecom Co's ROC % is 8.84% (calculated using TTM income statement data).
Chunghwa Telecom 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.
Chunghwa Telecom Co (NYSE:CHT) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment 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, Chunghwa Telecom Co's WACC % is 4.72%. Chunghwa Telecom Co's ROC % is 8.84% (calculated using TTM income statement data).
Chunghwa Telecom 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
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Chunghwa Telecom Co ROC % Related Terms
Chunghwa Telecom Co ROC % Historical Data
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The historical data trend for Chunghwa Telecom Co's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Chunghwa Telecom Co (CHT) has a ROC % of 9.32% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Chunghwa Telecom Co and its competitors.
Is Chunghwa Telecom Co's ROC % too high?
Chunghwa Telecom Co's current ROC % is 9.32%. The Telecommunication Services industry median ROC % is 4.54. Chunghwa Telecom Co's value of 9.32% is 105.3% above this industry median. Overall, Chunghwa Telecom Co has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chunghwa Telecom Co's ROC % compare to TMUS and VZ?
Chunghwa Telecom Co's ROC % of 9.32% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.54. Chunghwa Telecom Co's value of 9.32% is 105.3% 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 ROC % for a Telecommunication Services company?
The median ROC % among Telecommunication Services companies is 4.54, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chunghwa Telecom Co's current ROC % of 9.32% is 105.3% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Chunghwa Telecom Co and its competitors. For the Telecommunication Services industry, the median ROC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chunghwa Telecom Co's current ROC % is 9.32%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chunghwa Telecom Co stock overvalued right now?
Based on GuruFocus' analysis, Chunghwa Telecom Co (CHT) is currently considered Fairly Valued. The stock's GF Value™ is $42.34, compared to a current price of $44.81 — trading 5.8% above its estimated fair value. The current ROC % is 9.32% and 105.3% above the Telecommunication Services industry median of 4.54. Chunghwa Telecom Co's overall GF Score™ is 78/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Chunghwa Telecom Co (CHT), the current ROC % is 9.32% as of Mar. 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 Chunghwa Telecom Co (CHT) Overvalued in 2026?
Based on GuruFocus' analysis, Chunghwa Telecom Co stock appears to be overvalued.
The current stock price of $44.81 is trading 5.8% above its estimated GF Value™ of $42.34.
GuruFocus considers Chunghwa Telecom Co to be Fairly Valued.
Key valuation signals for CHT:
ROC %: 9.32%
GF Value™: $42.34 vs. price of $44.81 (5.8% above fair value)
Industry Position: 105.3% above the Telecommunication Services median
No single metric tells the full story. See the CHT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chunghwa Telecom Co Ltd is Taiwan's integrated telecom operator, providing fixed-line, wireless, and Internet and data services. The company's reportable segments are: Consumer Business, Enterprise Business, International Business, and Others. The majority of its revenue comes from the Consumer Business, which focuses on individual and home-centric businesses, such as mobile, fixed broadband, Wi-Fi, IPTV (MOD), and OTT services. The Enterprise business offers IDC, cloud, cybersecurity, 5G, AIoT, data, AI, enterprise digital transformation, and system integration services to businesses, and the International business segment represents services offered to international customers. Geographically, the company generates maximum revenue from its business in Taiwan.
78GF Score
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