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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 %. Aerospace Industrial Development's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 3.59%.
As of today (2026-07-24), Aerospace Industrial Development's WACC % is 3.58%. Aerospace Industrial Development's ROC % is 2.15% (calculated using TTM income statement data).
Aerospace Industrial Development earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Aerospace Industrial Development (TPE:2634) 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, Aerospace Industrial Development's WACC % is 3.58%. Aerospace Industrial Development's ROC % is 2.15% (calculated using TTM income statement data).
Aerospace Industrial Development 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.
Aerospace Industrial Development ROC % Related Terms
Aerospace Industrial Development ROC % Historical Data
* 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.
Aerospace Industrial Development (TPE:2634) has a ROC % of 3.59% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Aerospace Industrial Development and its competitors.
Is Aerospace Industrial Development's ROC % too high?
Aerospace Industrial Development's current ROC % is 3.59%. The Aerospace & Defense industry median ROC % is 4.19. Aerospace Industrial Development's value of 3.59% is 14.3% below this industry median. Overall, Aerospace Industrial Development has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aerospace Industrial Development's ROC % compare to SPCX and GE?
Aerospace Industrial Development's ROC % of 3.59% can be compared against companies in the Aerospace & Defense industry. The industry median ROC % is 4.19. Aerospace Industrial Development's value of 3.59% is 14.3% 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 an Aerospace & Defense company?
The median ROC % among Aerospace & Defense companies is 4.19, based on 355 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. Aerospace Industrial Development's current ROC % of 3.59% is 14.3% 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 Aerospace Industrial Development and its competitors. For the Aerospace & Defense industry, the median ROC % is 4.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aerospace Industrial Development's current ROC % is 3.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aerospace Industrial Development stock overvalued right now?
Based on GuruFocus' analysis, Aerospace Industrial Development (TPE:2634) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$49.25, compared to a current price of NT$61.90 — trading 25.7% above its estimated fair value. The current ROC % is 3.59% and 14.3% below the Aerospace & Defense industry median of 4.19. Aerospace Industrial Development's overall GF Score™ is 74/100 with 13 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 Aerospace Industrial Development (TPE:2634), the current ROC % is 3.59% 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 Aerospace Industrial Development (TPE:2634) Overvalued in 2026?
Based on GuruFocus' analysis, Aerospace Industrial Development stock appears to be overvalued.
The current stock price of NT$61.90 is trading 25.7% above its estimated GF Value™ of NT$49.25.
GuruFocus considers Aerospace Industrial Development to be Modestly Overvalued.
Key valuation signals for TPE:2634:
ROC %: 3.59%
GF Value™: NT$49.25 vs. price of NT$61.90 (25.7% above fair value)
Industry Position: 14.3% below the Aerospace & Defense median
No single metric tells the full story. See the TPE:2634 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aerospace Industrial Development Business Description
Aerospace Industrial Development Corp is involved in the manufacturing and development of aerospace and defense products. The company's main business categories are as follows: design, manufacture, assembly, testing and maintenance of aircraft, engines, avionics, and related components; consulting services and technology transfers of aerospace technology, logistical support and engineering technology management of large-scale projects; engineering and development of software and sales of aerospace products. Geographically, the company operates in Asia, Europe and American regions.
74GF Score
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