ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Chia Ta World Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 2.52%.
As of today (2026-06-26), Chia Ta World Co's WACC % is 3.21%. Chia Ta World Co's ROC % is 2.23% (calculated using TTM income statement data).
Chia Ta World Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Chia Ta World Co (TPE:2033) 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, Chia Ta World Co's WACC % is 3.21%. Chia Ta World Co's ROC % is 2.23% (calculated using TTM income statement data).
Chia Ta World Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Chia Ta World Co ROC % Related Terms
Chia Ta World Co ROC % Historical Data
* Premium members only.
The historical data trend for Chia Ta World 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 (Dec. 2025) 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.
Chia Ta World Co (TPE:2033) has a ROC % of 2.52% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Chia Ta World Co and its competitors.
Is Chia Ta World Co's ROC % too high?
Chia Ta World Co's current ROC % is 2.52%. The Steel industry median ROC % is 2.63. Chia Ta World Co's value of 2.52% is 4% below this industry median. Overall, Chia Ta World Co has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chia Ta World Co's ROC % compare to NUE and STLD?
Chia Ta World Co's ROC % of 2.52% can be compared against companies in the Steel industry. The industry median ROC % is 2.63. Chia Ta World Co's value of 2.52% is 4% below 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 Steel company?
The median ROC % among Steel companies is 2.63, based on 624 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. Chia Ta World Co's current ROC % of 2.52% is 4% below 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 Chia Ta World Co and its competitors. For the Steel industry, the median ROC % is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chia Ta World Co's current ROC % is 2.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chia Ta World Co stock overvalued right now?
Based on GuruFocus' analysis, Chia Ta World Co (TPE:2033) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$18.59, compared to a current price of NT$16.40 — trading 11.8% below its estimated fair value. The current ROC % is 2.52% and 4% below the Steel industry median of 2.63. Chia Ta World Co's overall GF Score™ is 75/100 with 2 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 Chia Ta World Co (TPE:2033), the current ROC % is 2.52% 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 Chia Ta World Co (TPE:2033) Overvalued in 2026?
Based on GuruFocus' analysis, Chia Ta World Co stock appears to be undervalued.
The current stock price of NT$16.40 is trading 11.8% below its estimated GF Value™ of NT$18.59.
GuruFocus considers Chia Ta World Co to be Modestly Undervalued.
Key valuation signals for TPE:2033:
ROC %: 2.52%
GF Value™: NT$18.59 vs. price of NT$16.40 (11.8% below fair value)
No single metric tells the full story. See the TPE:2033 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chia Ta World Co Ltd is principally engaged in the manufacture, processing and distribution of steel products including steel wires, galvanized steel wires, galvanized iron wires, pre-stressed concrete (PC) steel wire, prestressed concrete (PC) steel wire strands, pre-stressed concrete (PC) deformed steel bars, steel wire strands, steel ropes, steel cables, springs, steel & iron wires, as well as machinery hardware parts. Geographically, the firm generates a majority of its revenue from Taiwan, followed by Japan and Mainland China.
75GF Score
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