ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Grape King Bio's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 23.79%.
As of today (2026-07-08), Grape King Bio's WACC % is 3.44%. Grape King Bio's ROIC % is 17.20% (calculated using TTM income statement data).
Grape King Bio 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.
Grape King Bio (TPE:1707) 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, Grape King Bio's WACC % is 3.44%. Grape King Bio's ROIC % is 17.20% (calculated using TTM income statement data).
Grape King Bio 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.
Grape King Bio ROIC % Related Terms
Grape King Bio ROIC % Historical Data
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The historical data trend for Grape King Bio'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 Drug Manufacturers - Specialty & Generic subindustry, Grape King Bio'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.
Grape King Bio ROIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Grape King Bio's ROIC % distribution charts can be found below:
* The bar in red indicates where Grape King Bio'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.
Grape King Bio (TPE:1707) has a ROIC % of 23.79% 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 Grape King Bio and its competitors.
Is Grape King Bio's ROIC % too high?
Grape King Bio's current ROIC % is 23.79%. The Drug Manufacturers industry median ROIC % is 4.50. Grape King Bio's value of 23.79% is 429.3% above this industry median. Overall, Grape King Bio has a GF Score™ of 78/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Grape King Bio's ROIC % compare to ZTS and UTHR?
Grape King Bio's ROIC % of 23.79% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.50. Grape King Bio's value of 23.79% is 429.3% 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 a Drug Manufacturers company?
The median ROIC % among Drug Manufacturers companies is 4.50, based on 986 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. Grape King Bio's current ROIC % of 23.79% is 429.3% 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 Grape King Bio and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grape King Bio's current ROIC % is 23.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grape King Bio stock overvalued right now?
Based on GuruFocus' analysis, Grape King Bio (TPE:1707) is currently considered Possible Value Trap. The stock's GF Value™ is NT$144.03, compared to a current price of NT$91.00 — trading 36.8% below its estimated fair value. The current ROIC % is 23.79% and 429.3% above the Drug Manufacturers industry median of 4.50. Grape King Bio's overall GF Score™ is 78/100 with 5 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 Grape King Bio (TPE:1707), the current ROIC % is 23.79% 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 Grape King Bio (TPE:1707) Overvalued in 2026?
Based on GuruFocus' analysis, Grape King Bio stock appears to be undervalued.
The current stock price of NT$91.00 is trading 36.8% below its estimated GF Value™ of NT$144.03.
GuruFocus considers Grape King Bio to be Possible Value Trap.
Key valuation signals for TPE:1707:
ROIC %: 23.79%
GF Value™: NT$144.03 vs. price of NT$91.00 (36.8% below fair value)
Industry Position: 429.3% above the Drug Manufacturers median
No single metric tells the full story. See the TPE:1707 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grape King Bio Ltd is a specialty and generic drug manufacturing company engaged in producing and selling pharmaceutical preparations, patent medicines, liquid tonics, drinks, and healthy food. The company has three segments: MLM (Multi-Level Marketing), which is a direct seller of Pro-partner Inc, including the company's development and manufacturing products for Pro-partner Inc, the Distributors segment includes the company's self-owned brand products, and ODM/OEM (Original Design Manufacturer/Original Equipment Manufacturer) includes ODM/OEM in Taiwan and Shanghai. The group operates in three principal geographical areas - Taiwan, China, and Others, and it derives a majority of its revenue from Taiwan.
78GF Score
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