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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Perfect Optronics's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -67.41%.
As of today (2026-09-02), Perfect Optronics's WACC % is 6.83%. Perfect Optronics's ROIC % is -71.80% (calculated using TTM income statement data).
Perfect Optronics earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Perfect Optronics's WACC % is 6.83%. Perfect Optronics's ROIC % is -71.80% (calculated using TTM income statement data).
Perfect Optronics 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 %, ROIC % 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.
Perfect Optronics ROIC % Related Terms
Perfect Optronics ROIC % Historical Data
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The historical data trend for Perfect Optronics's ROIC % can be seen below:
* 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, Perfect Optronics's ROIC %, along with its competitors' market caps and ROIC % 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.
Perfect Optronics ROIC % vs Hardware Industry
For the Hardware industry and Technology sector, Perfect Optronics's ROIC % distribution charts can be found below:
* The bar in red indicates where Perfect Optronics's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Perfect Optronics (HKSE:08311) has a ROIC % of -67.41% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Perfect Optronics and its competitors.
Is Perfect Optronics' ROIC % too high?
Perfect Optronics' current ROIC % is -67.41%.
How does Perfect Optronics' ROIC % compare to APH and GLW?
Perfect Optronics' ROIC % of -67.41% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.38. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Hardware company?
The median ROIC % among Hardware companies is 4.38, based on 2,436 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Perfect Optronics and its competitors. For the Hardware industry, the median ROIC % is 4.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perfect Optronics's current ROIC % is -67.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perfect Optronics stock overvalued right now?
Based on GuruFocus' analysis, Perfect Optronics (HKSE:08311) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.03, compared to a current price of HK$0.05 — trading 66.7% above its estimated fair value. The current ROIC % is -67.41%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Perfect Optronics (HKSE:08311), the current ROIC % is -67.41% 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.
Perfect Optronics Ltd is an investment holding company principally engaged in the trading of display panels, optics products, and related electronic components. It offers Thin film transistor liquid crystal display (TFT-LCD) panels and modules, Polarisers, Electronic signage, Optics products, Light guide plates, Integrated circuits, and other products. Key revenue is derived from the TFT-LCD panels and modules. It operates businesses in Hong Kong, Mainland China, and Taiwan, out of which Hong Kong accounts for a majority of the revenue.
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