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.
Zhen Ding Technology Holding ROE % Related Terms
Zhen Ding Technology Holding ROE % 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.
For the Electronic Components subindustry, Zhen Ding Technology Holding'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.
Zhen Ding Technology Holding ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Zhen Ding Technology Holding's ROE % distribution charts can be found below:
* The bar in red indicates where Zhen Ding Technology Holding'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.
Zhen Ding Technology Holding (TPE:4958) has a ROE % of 10.67% 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 Zhen Ding Technology Holding and its competitors. This is near median its historical median of 11.49. Over the past decade, Zhen Ding Technology Holding's ROE % has ranged from 5.83 to 16.83. According to the industry distribution chart, Zhen Ding Technology Holding ranks #1065 out of 2423 companies in the Hardware industry, placing it in the top 44%.
Is Zhen Ding Technology Holding's ROE % too high?
Zhen Ding Technology Holding's current ROE % of 10.67% is near median its 10-year median of 11.49. Over the past 10 years, this metric has ranged from a low of 5.83 to a high of 16.83. The Hardware industry median ROE % is 4.61. Zhen Ding Technology Holding's value of 10.67% is 131.5% above this industry median. Based on the distribution chart, Zhen Ding Technology Holding ranks #1065 out of 2423 companies in the Hardware industry, which is above the industry midpoint. Overall, Zhen Ding Technology Holding has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhen Ding Technology Holding's ROE % compare to APH and GLW?
According to the Hardware industry distribution chart, Zhen Ding Technology Holding ranks #1065 out of 2423 companies for ROE %. This puts Zhen Ding Technology Holding in the upper half of its industry. The industry median ROE % is 4.61. Zhen Ding Technology Holding's value of 10.67% is 131.5% above this benchmark. Historically, Zhen Ding Technology Holding's own ROE % has ranged from 5.83 to 16.83 over the past decade. While the company's 10-year median is 11.49 vs. the industry median of 4.61, Zhen Ding Technology Holding 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 Hardware company?
The median ROE % among Hardware companies is 4.61, based on 2,423 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. Zhen Ding Technology Holding's current ROE % of 10.67% is 131.5% 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 Zhen Ding Technology Holding and its competitors. For the Hardware industry, the median ROE % is 4.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhen Ding Technology Holding's current ROE % is 10.67%, which is near median its own 10-year median of 11.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhen Ding Technology Holding stock overvalued right now?
Based on GuruFocus' analysis, Zhen Ding Technology Holding (TPE:4958) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$111.81, compared to a current price of NT$580.00 — trading 418.7% above its estimated fair value. The current ROE % is 10.67%, which is near median its 10-year median of 11.49 and 131.5% above the Hardware industry median of 4.61. Zhen Ding Technology Holding's overall GF Score™ is 68/100 with 9 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 Zhen Ding Technology Holding (TPE:4958), the current ROE % is 10.67% 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 Zhen Ding Technology Holding (TPE:4958) Overvalued in 2026?
Based on GuruFocus' analysis, Zhen Ding Technology Holding stock appears to be overvalued.
The current stock price of NT$580.00 is trading 418.7% above its estimated GF Value™ of NT$111.81.
GuruFocus considers Zhen Ding Technology Holding to be Significantly Overvalued.
Key valuation signals for TPE:4958:
ROE %: 10.67% (near median its 10-year median of 11.49)
GF Value™: NT$111.81 vs. price of NT$580.00 (418.7% above fair value)
Industry Position: 131.5% above the Hardware median (#1065 of 2423)
No single metric tells the full story. See the TPE:4958 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhen Ding Technology Holding Ltd manufactures printed circuit boards, including high-density interconnection, flexible printed circuits, rigid printed circuit boards, and integrated circuit substrates. These products are used in a variety of applications, including personal computers, watches, memory and data cards, smartphones, tablets, media players, televisions, digital and video cameras, and game consoles. Its customers include the telecommunications, electronics, automotive, medical equipment, military equipment, and space industries. The Group generates all of its revenue from the manufacturing of PCB products. Geographically, it derives maximum revenue from the USA, and the rest from Mainland China, Taiwan, Singapore, and other regions.
68GF Score
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