ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Winbond Electronics's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 8.66%.
As of today (2026-06-26), Winbond Electronics's WACC % is 3.20%. Winbond Electronics's ROC % is 2.70% (calculated using TTM income statement data).
Winbond Electronics earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Winbond Electronics (TPE:2344) 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, Winbond Electronics's WACC % is 3.20%. Winbond Electronics's ROC % is 2.70% (calculated using TTM income statement data).
Winbond Electronics 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.
Winbond Electronics ROC % Related Terms
Winbond Electronics ROC % Historical Data
* Premium members only.
The historical data trend for Winbond Electronics'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.
Winbond Electronics (TPE:2344) has a ROC % of 8.66% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Winbond Electronics and its competitors.
Is Winbond Electronics' ROC % too high?
Winbond Electronics' current ROC % is 8.66%. The Semiconductors industry median ROC % is 3.74. Winbond Electronics' value of 8.66% is 131.6% above this industry median. Overall, Winbond Electronics has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Winbond Electronics' ROC % compare to NVDA and AVGO?
Winbond Electronics' ROC % of 8.66% can be compared against companies in the Semiconductors industry. The industry median ROC % is 3.74. Winbond Electronics' value of 8.66% is 131.6% 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 Semiconductors company?
The median ROC % among Semiconductors companies is 3.74, based on 1,012 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. Winbond Electronics's current ROC % of 8.66% is 131.6% 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 Winbond Electronics and its competitors. For the Semiconductors industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Winbond Electronics's current ROC % is 8.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Winbond Electronics stock overvalued right now?
Based on GuruFocus' analysis, Winbond Electronics (TPE:2344) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$46.18, compared to a current price of NT$206.50 — trading 347.2% above its estimated fair value. The current ROC % is 8.66% and 131.6% above the Semiconductors industry median of 3.74. Winbond Electronics' overall GF Score™ is 64/100 with 9 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 Winbond Electronics (TPE:2344), the current ROC % is 8.66% 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 Winbond Electronics (TPE:2344) Overvalued in 2026?
Based on GuruFocus' analysis, Winbond Electronics stock appears to be overvalued.
The current stock price of NT$206.50 is trading 347.2% above its estimated GF Value™ of NT$46.18.
GuruFocus considers Winbond Electronics to be Significantly Overvalued.
Key valuation signals for TPE:2344:
ROC %: 8.66%
GF Value™: NT$46.18 vs. price of NT$206.50 (347.2% above fair value)
Industry Position: 131.6% above the Semiconductors median
No single metric tells the full story. See the TPE:2344 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Winbond Electronics Corp is engaged in the design, development, manufacture, and marketing of very large scale integration (VLSI) integrated circuits (ICs) used in a variety of microelectronic applications. In addition, it offers customised memory solutions like Mobile RAM and Specialty DRAM, and core storage flash memory products. The company's operating segments are Customized Memory Solution product, Flash Memory product, and Logic IC product. Maximum revenue is generated from the Flash Memory product segment, which engages mainly in the manufacturing, selling, researching, designing and after-sales service of Flash Memory product. Geographically, the company generates maximum revenue from Asia, followed by America, Europe, and Other regions.
64GF Score
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