ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Taiwan Advance Bio-Pharmaceutical's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 9.80%.
As of today (2026-07-05), Taiwan Advance Bio-Pharmaceutical's WACC % is 2.81%. Taiwan Advance Bio-Pharmaceutical's ROIC % is 5.44% (calculated using TTM income statement data).
Taiwan Advance Bio-Pharmaceutical generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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, Taiwan Advance Bio-Pharmaceutical's WACC % is 2.81%. Taiwan Advance Bio-Pharmaceutical's ROIC % is 5.44% (calculated using TTM income statement data).
Taiwan Advance Bio-Pharmaceutical generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Taiwan Advance Bio-Pharmaceutical ROIC % Related Terms
Taiwan Advance Bio-Pharmaceutical ROIC % 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 Biotechnology subindustry, Taiwan Advance Bio-Pharmaceutical'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.
Taiwan Advance Bio-Pharmaceutical ROIC % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Taiwan Advance Bio-Pharmaceutical's ROIC % distribution charts can be found below:
* The bar in red indicates where Taiwan Advance Bio-Pharmaceutical'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.
Taiwan Advance Bio-Pharmaceutical (ROCO:4186) has a ROIC % of 9.80% 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 Taiwan Advance Bio-Pharmaceutical and its competitors.
Is Taiwan Advance Bio-Pharmaceutical's ROIC % too high?
Taiwan Advance Bio-Pharmaceutical's current ROIC % is 9.80%. Overall, Taiwan Advance Bio-Pharmaceutical has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Taiwan Advance Bio-Pharmaceutical's ROIC % compare to VRTX and REGN?
Taiwan Advance Bio-Pharmaceutical's ROIC % of 9.80% can be compared against companies in the Biotechnology industry. 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 Biotechnology company?
A good ROIC % depends on the Biotechnology industry context. 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 Taiwan Advance Bio-Pharmaceutical and its competitors. Taiwan Advance Bio-Pharmaceutical's current ROIC % is 9.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Advance Bio-Pharmaceutical stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Advance Bio-Pharmaceutical (ROCO:4186) is currently considered Possible Value Trap. The stock's GF Value™ is NT$17.88, compared to a current price of NT$10.10 — trading 43.5% below its estimated fair value. The current ROIC % is 9.80%. Taiwan Advance Bio-Pharmaceutical's overall GF Score™ is 57/100 with 4 warning signs to review. 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 Taiwan Advance Bio-Pharmaceutical (ROCO:4186), the current ROIC % is 9.80% 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 Taiwan Advance Bio-Pharmaceutical (ROCO:4186) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Advance Bio-Pharmaceutical stock appears to be undervalued.
The current stock price of NT$10.10 is trading 43.5% below its estimated GF Value™ of NT$17.88.
GuruFocus considers Taiwan Advance Bio-Pharmaceutical to be Possible Value Trap.
Key valuation signals for ROCO:4186:
ROIC %: 9.80%
GF Value™: NT$17.88 vs. price of NT$10.10 (43.5% below fair value)
No single metric tells the full story. See the ROCO:4186 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Advance Bio-Pharmaceutical Business Description
Taiwan Advance Bio-Pharmaceutical Inc operates in the food safety industry. The company's products include a Food safety test kit, Animal test kit, Pesticide test kit, Mycotoxin test kit, Nuleic acid extraction kit.
57GF Score
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