ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Elan Microelectronics's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 25.38%.
As of today (2026-06-27), Elan Microelectronics's WACC % is 4.90%. Elan Microelectronics's ROC % is 26.39% (calculated using TTM income statement data).
Elan Microelectronics 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.
Elan Microelectronics (TPE:2458) 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, Elan Microelectronics's WACC % is 4.90%. Elan Microelectronics's ROC % is 26.39% (calculated using TTM income statement data).
Elan Microelectronics 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.
* 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.
Elan Microelectronics (TPE:2458) has a ROC % of 25.38% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Elan Microelectronics and its competitors.
Is Elan Microelectronics' ROC % too high?
Elan Microelectronics' current ROC % is 25.38%. The Semiconductors industry median ROC % is 3.74. Elan Microelectronics' value of 25.38% is 578.6% above this industry median. Overall, Elan Microelectronics has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Elan Microelectronics' ROC % compare to NVDA and AVGO?
Elan Microelectronics' ROC % of 25.38% can be compared against companies in the Semiconductors industry. The industry median ROC % is 3.74. Elan Microelectronics' value of 25.38% is 578.6% 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. Elan Microelectronics's current ROC % of 25.38% is 578.6% 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 Elan Microelectronics 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. Elan Microelectronics's current ROC % is 25.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elan Microelectronics stock overvalued right now?
Based on GuruFocus' analysis, Elan Microelectronics (TPE:2458) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$140.09, compared to a current price of NT$172.00 — trading 22.8% above its estimated fair value. The current ROC % is 25.38% and 578.6% above the Semiconductors industry median of 3.74. Elan Microelectronics' overall GF Score™ is 88/100 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 Elan Microelectronics (TPE:2458), the current ROC % is 25.38% 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 Elan Microelectronics (TPE:2458) Overvalued in 2026?
Based on GuruFocus' analysis, Elan Microelectronics stock appears to be overvalued.
The current stock price of NT$172.00 is trading 22.8% above its estimated GF Value™ of NT$140.09.
GuruFocus considers Elan Microelectronics to be Modestly Overvalued.
Key valuation signals for TPE:2458:
ROC %: 25.38%
GF Value™: NT$140.09 vs. price of NT$172.00 (22.8% above fair value)
Industry Position: 578.6% above the Semiconductors median
No single metric tells the full story. See the TPE:2458 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elan Microelectronics Corp is engaged in the manufacture and sale of embedded microcontrollers and systems, digital signal processors, computer peripheral control integrated circuits and systems, fingerprint recognition devices and credit card applications, and also provides research and development services. The Group operates through the Consumer Touch Control, Laptop Input Device, Investment, Sales and Retailing, and Other segments. The Laptop Input Device segment generates maximum revenue and engages in laptop input devices, while the Consumer Touch Control segment engages in microprocessors, digital signal processors, application-specific integrated circuits and modules. The Group generates maximum revenue from Hong Kong.
88GF Score
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