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, Novatek Microelectronics'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.
Novatek Microelectronics ROE % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Novatek Microelectronics's ROE % distribution charts can be found below:
* The bar in red indicates where Novatek Microelectronics'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.
Novatek Microelectronics (TPE:3034) has a ROE % of 22.48% 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 Novatek Microelectronics and its competitors. This is 18% below median its historical median of 27.56. Over the past decade, Novatek Microelectronics' ROE % has ranged from 17.72 to 70.41. According to the industry distribution chart, Novatek Microelectronics ranks #103 out of 1004 companies in the Semiconductors industry, placing it in the top 10.3%.
Is Novatek Microelectronics' ROE % too high?
Novatek Microelectronics' current ROE % of 22.48% is 18% below median its 10-year median of 27.56. Over the past 10 years, this metric has ranged from a low of 17.72 to a high of 70.41. The Semiconductors industry median ROE % is 4.55. Novatek Microelectronics' value of 22.48% is 394.1% above this industry median. Based on the distribution chart, Novatek Microelectronics ranks #103 out of 1004 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Novatek Microelectronics has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Novatek Microelectronics' ROE % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Novatek Microelectronics ranks #103 out of 1004 companies for ROE %. This places Novatek Microelectronics in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 4.55. Novatek Microelectronics' value of 22.48% is 394.1% above this benchmark. Historically, Novatek Microelectronics' own ROE % has ranged from 17.72 to 70.41 over the past decade. While the company's 10-year median is 27.56 vs. the industry median of 4.55, Novatek Microelectronics 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. Novatek Microelectronics's current ROE % of 22.48% is 394.1% 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 Novatek Microelectronics 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. Novatek Microelectronics's current ROE % is 22.48%, which is 18% below median its own 10-year median of 27.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novatek Microelectronics stock overvalued right now?
Based on GuruFocus' analysis, Novatek Microelectronics (TPE:3034) is currently considered Fairly Valued. The stock's GF Value™ is NT$485.91, compared to a current price of NT$509.00 — trading 4.8% above its estimated fair value. The current ROE % is 22.48%, which is 18% below median its 10-year median of 27.56 and 394.1% above the Semiconductors industry median of 4.55. Novatek Microelectronics' overall GF Score™ is 93/100 with 8 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 Novatek Microelectronics (TPE:3034), the current ROE % is 22.48% 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 Novatek Microelectronics (TPE:3034) Overvalued in 2026?
Based on GuruFocus' analysis, Novatek Microelectronics stock appears to be overvalued.
The current stock price of NT$509.00 is trading 4.8% above its estimated GF Value™ of NT$485.91.
GuruFocus considers Novatek Microelectronics to be Fairly Valued.
Key valuation signals for TPE:3034:
ROE %: 22.48% (18% below median its 10-year median of 27.56)
GF Value™: NT$485.91 vs. price of NT$509.00 (4.8% above fair value)
Industry Position: 394.1% above the Semiconductors median (#103 of 1004)
No single metric tells the full story. See the TPE:3034 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Novatek Microelectronics Corp is mainly engaged in researching, developing, manufacturing and sales of integrated circuit chips speech, communication, computer peripheral, LCD driver IC system, embedded MCU, DSP and system. Its products include Large-sized driver IC, Medium-sized driver IC, and Small-sized driver IC. The revenue of the company comes from flat panel display and integrated circuit design products.
93GF Score
Get the complete analysis for TPE:3034
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TPE:3034 has been successfully added to your 
