Realtek SemiconductorTPE:2379 -9.09%92 ROE % is 21.31% as of Dec. 2025, which is 21% below its 10-year median of 27.13. GuruFocus rates TPE:2379 with a GF Score™ of 92/100 and a GF Value™ of NT$569.38 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,004 Semiconductors companies, Realtek Semiconductor ranks better than 92.93% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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.
For the Semiconductors subindustry, Realtek Semiconductor's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Realtek Semiconductor ROE % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Realtek Semiconductor's ROE % distribution charts can be found below:
* The bar in red indicates where Realtek Semiconductor's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Realtek Semiconductor (TPE:2379) has a ROE % of 21.31% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Realtek Semiconductor and its competitors. This is 21% below median its historical median of 27.13. Over the past decade, Realtek Semiconductor's ROE % has ranged from 13.48 to 49.28. According to the industry distribution chart, Realtek Semiconductor ranks #71 out of 1004 companies in the Semiconductors industry, placing it in the top 7.1%.
Is Realtek Semiconductor's ROE % too high?
Realtek Semiconductor's current ROE % of 21.31% is 21% below median its 10-year median of 27.13. Over the past 10 years, this metric has ranged from a low of 13.48 to a high of 49.28. The Semiconductors industry median ROE % is 4.55. Realtek Semiconductor's value of 21.31% is 368.4% above this industry median. Based on the distribution chart, Realtek Semiconductor ranks #71 out of 1004 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Realtek Semiconductor has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Realtek Semiconductor's ROE % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Realtek Semiconductor ranks #71 out of 1004 companies for ROE %. This places Realtek Semiconductor in the top 7% of its industry — outperforming the majority of peers. The industry median ROE % is 4.55. Realtek Semiconductor's value of 21.31% is 368.4% above this benchmark. Historically, Realtek Semiconductor's own ROE % has ranged from 13.48 to 49.28 over the past decade. While the company's 10-year median is 27.13 vs. the industry median of 4.55, Realtek Semiconductor has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Semiconductors company?
The median ROE % among Semiconductors companies is 4.55, based on 1,004 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Realtek Semiconductor's current ROE % of 21.31% is 368.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Realtek Semiconductor and its competitors. For the Semiconductors industry, the median ROE % is 4.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Realtek Semiconductor's current ROE % is 21.31%, which is 21% below median its own 10-year median of 27.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Realtek Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Realtek Semiconductor (TPE:2379) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$569.38, compared to a current price of NT$740.00 — trading 30% above its estimated fair value. The current ROE % is 21.31%, which is 21% below median its 10-year median of 27.13 and 368.4% above the Semiconductors industry median of 4.55. Realtek Semiconductor's overall GF Score™ is 92/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Realtek Semiconductor (TPE:2379), the current ROE % is 21.31% 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 Realtek Semiconductor (TPE:2379) Overvalued in 2026?
Based on GuruFocus' analysis, Realtek Semiconductor stock appears to be overvalued.
The current stock price of NT$740.00 is trading 30% above its estimated GF Value™ of NT$569.38.
GuruFocus considers Realtek Semiconductor to be Modestly Overvalued.
Key valuation signals for TPE:2379:
ROE %: 21.31% (21% below median its 10-year median of 27.13)
GF Value™: NT$569.38 vs. price of NT$740.00 (30% above fair value)
Industry Position: 368.4% above the Semiconductors median (#71 of 1004)
No single metric tells the full story. See the TPE:2379 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Realtek Semiconductor Corp is engaged in researching, developing, manufacturing, and selling various integrated circuits and related application software. The products of the company include Connected Media ICs, Communications Network ICs, Computer Peripheral ICs, Multimedia ICs, Smart Interconnect ICs and others. The company derives maximum revenue from the Asian region followed by Taiwan.
92GF Score
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