ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Tai Twun Enterprises Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -19.46%.
As of today (2026-07-09), Tai Twun Enterprises Co's WACC % is -5.55%. Tai Twun Enterprises Co's ROC % is -21.42% (calculated using TTM income statement data).
Tai Twun Enterprises Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Tai Twun Enterprises Co (TPE:3432) 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, Tai Twun Enterprises Co's WACC % is -5.55%. Tai Twun Enterprises Co's ROC % is -21.42% (calculated using TTM income statement data).
Tai Twun Enterprises 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.
* 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.
Tai Twun Enterprises Co (TPE:3432) has a ROC % of -19.46% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Tai Twun Enterprises Co and its competitors.
Is Tai Twun Enterprises Co's ROC % too high?
Tai Twun Enterprises Co's current ROC % is -19.46%. Overall, Tai Twun Enterprises Co has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tai Twun Enterprises Co's ROC % compare to VRT and BE?
Tai Twun Enterprises Co's ROC % of -19.46% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.19. 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 Industrial Products company?
The median ROC % among Industrial Products companies is 5.19, based on 3,029 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. 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 Tai Twun Enterprises Co and its competitors. For the Industrial Products industry, the median ROC % is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tai Twun Enterprises Co's current ROC % is -19.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tai Twun Enterprises Co stock overvalued right now?
Based on GuruFocus' analysis, Tai Twun Enterprises Co (TPE:3432) is currently considered Possible Value Trap. The stock's GF Value™ is NT$143.67, compared to a current price of NT$18.05 — trading 87.4% below its estimated fair value. The current ROC % is -19.46%. Tai Twun Enterprises Co's overall GF Score™ is 72/100 with 6 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 Tai Twun Enterprises Co (TPE:3432), the current ROC % is -19.46% 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 Tai Twun Enterprises Co (TPE:3432) Overvalued in 2026?
Based on GuruFocus' analysis, Tai Twun Enterprises Co stock appears to be undervalued.
The current stock price of NT$18.05 is trading 87.4% below its estimated GF Value™ of NT$143.67.
GuruFocus considers Tai Twun Enterprises Co to be Possible Value Trap.
Key valuation signals for TPE:3432:
ROC %: -19.46%
GF Value™: NT$143.67 vs. price of NT$18.05 (87.4% below fair value)
No single metric tells the full story. See the TPE:3432 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tai Twun Enterprises Co Ltd is engaged in the production and marketing of electronic components. The Group's reportable operating segments are classified based on products. The electronic component segment is engaged in the manufacture and sales of electronic and communications terminals, connectors, and other components. The electric two-wheel vehicle segment is engaged in the sales of mini electric two-wheel vehicles, electric bicycles, and electric scooters. Its geographic areas are Taiwan and China.
72GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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