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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Greatek Electronics's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 10.84%.
As of today (2026-07-14), Greatek Electronics's WACC % is 4.01%. Greatek Electronics's ROC % is 11.83% (calculated using TTM income statement data).
Greatek Electronics 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.
Greatek Electronics (TPE:2441) 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, Greatek Electronics's WACC % is 4.01%. Greatek Electronics's ROC % is 11.83% (calculated using TTM income statement data).
Greatek Electronics 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.
Greatek Electronics ROC % Related Terms
Greatek Electronics ROC % Historical Data
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The historical data trend for Greatek 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.
Greatek Electronics (TPE:2441) has a ROC % of 10.84% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Greatek Electronics and its competitors.
Is Greatek Electronics' ROC % too high?
Greatek Electronics' current ROC % is 10.84%. The Semiconductors industry median ROC % is 3.77. Greatek Electronics' value of 10.84% is 187.5% above this industry median. Overall, Greatek Electronics has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Greatek Electronics' ROC % compare to AMAT and LRCX?
Greatek Electronics' ROC % of 10.84% can be compared against companies in the Semiconductors industry. The industry median ROC % is 3.77. Greatek Electronics' value of 10.84% is 187.5% 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 3.77, based on 1,011 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. Greatek Electronics's current ROC % of 10.84% is 187.5% 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 Greatek Electronics and its competitors. For the Semiconductors industry, the median ROC % is 3.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Greatek Electronics's current ROC % is 10.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Greatek Electronics stock overvalued right now?
Based on GuruFocus' analysis, Greatek Electronics (TPE:2441) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$70.92, compared to a current price of NT$137.50 — trading 93.9% above its estimated fair value. The current ROC % is 10.84% and 187.5% above the Semiconductors industry median of 3.77. Greatek Electronics' overall GF Score™ is 68/100 with 7 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 Greatek Electronics (TPE:2441), the current ROC % is 10.84% 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 Greatek Electronics (TPE:2441) Overvalued in 2026?
Based on GuruFocus' analysis, Greatek Electronics stock appears to be overvalued.
The current stock price of NT$137.50 is trading 93.9% above its estimated GF Value™ of NT$70.92.
GuruFocus considers Greatek Electronics to be Significantly Overvalued.
Key valuation signals for TPE:2441:
ROC %: 10.84%
GF Value™: NT$70.92 vs. price of NT$137.50 (93.9% above fair value)
Industry Position: 187.5% above the Semiconductors median
No single metric tells the full story. See the TPE:2441 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Greatek Electronics Inc is engaged in assembling, packaging, and testing semiconductors. The firm operates in two main segments: assembly services and testing services. Over half of its revenue comes from the assembly services segment. The assembly services segment provides lead-frame bases for conductors, produces copper wires, and builds semiconductors through contract agreements. The testing services segment runs experiments and completes final tests of semiconductors. The majority of the company's revenue is generated from Taiwan, and the rest from Asia (excluding Taiwan), America, Europe, and Africa.
68GF Score
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