ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Value Valves Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 7.27%.
As of today (2026-07-07), Value Valves Co's WACC % is 3.43%. Value Valves Co's ROIC % is 10.54% (calculated using TTM income statement data).
Value Valves Co 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.
Value Valves Co (ROCO:4580) ROIC % Explanation
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, Value Valves Co's WACC % is 3.43%. Value Valves Co's ROIC % is 10.54% (calculated using TTM income statement data).
Value Valves Co 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.
Value Valves Co ROIC % Related Terms
Value Valves Co ROIC % Historical Data
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The historical data trend for Value Valves Co'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 Specialty Industrial Machinery subindustry, Value Valves Co'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.
Value Valves Co ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Value Valves Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Value Valves Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (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.
Value Valves Co (ROCO:4580) has a ROIC % of 7.27% 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 Value Valves Co and its competitors.
Is Value Valves Co's ROIC % too high?
Value Valves Co's current ROIC % is 7.27%. The Industrial Products industry median ROIC % is 5.20. Value Valves Co's value of 7.27% is 39.9% above this industry median. Overall, Value Valves Co has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Value Valves Co's ROIC % compare to GEV and ETN?
Value Valves Co's ROIC % of 7.27% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.20. Value Valves Co's value of 7.27% is 39.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.20, based on 3,028 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. Value Valves Co's current ROIC % of 7.27% is 39.9% 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 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 Value Valves Co and its competitors. For the Industrial Products industry, the median ROIC % is 5.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Value Valves Co's current ROIC % is 7.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Value Valves Co stock overvalued right now?
Based on GuruFocus' analysis, Value Valves Co (ROCO:4580) is currently considered Fairly Valued. The stock's GF Value™ is NT$77.80, compared to a current price of NT$81.70 — trading 5% above its estimated fair value. The current ROIC % is 7.27% and 39.9% above the Industrial Products industry median of 5.20. Value Valves Co's overall GF Score™ is 87/100 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 Value Valves Co (ROCO:4580), the current ROIC % is 7.27% 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 Value Valves Co (ROCO:4580) Overvalued in 2026?
Based on GuruFocus' analysis, Value Valves Co stock appears to be overvalued.
The current stock price of NT$81.70 is trading 5% above its estimated GF Value™ of NT$77.80.
GuruFocus considers Value Valves Co to be Fairly Valued.
Key valuation signals for ROCO:4580:
ROIC %: 7.27%
GF Value™: NT$77.80 vs. price of NT$81.70 (5% above fair value)
Industry Position: 39.9% above the Industrial Products median
No single metric tells the full story. See the ROCO:4580 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Value Valves Co Ltd is a Taiwan based company engaged in the development, design, manufacture, inspection and marketing of a different variety of valves. Its product offerings include butterfly valves, check valves, damper valves, ball valves, globe valves, gate valves, gear box control, pneumatic control, hydraulic control, electric control and customized valves. The company exports its products to the United States, Japan, Europe, Oceania and other advanced industrial and regions. Its products are widely used in petroleum and petrochemical products, steel, shipbuilding, energy. water treatment, paper, air-conditioning, electronic and other industrial fields.
87GF Score
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