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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 %. Visual Photonics Epitaxy Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 23.39%.
As of today (2026-07-14), Visual Photonics Epitaxy Co's WACC % is 2.04%. Visual Photonics Epitaxy Co's ROIC % is 20.60% (calculated using TTM income statement data).
Visual Photonics Epitaxy 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.
Visual Photonics Epitaxy Co (TPE:2455) 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, Visual Photonics Epitaxy Co's WACC % is 2.04%. Visual Photonics Epitaxy Co's ROIC % is 20.60% (calculated using TTM income statement data).
Visual Photonics Epitaxy 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.
Visual Photonics Epitaxy Co ROIC % Related Terms
Visual Photonics Epitaxy Co 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 Semiconductor Equipment & Materials subindustry, Visual Photonics Epitaxy 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.
Visual Photonics Epitaxy Co ROIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Visual Photonics Epitaxy Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Visual Photonics Epitaxy Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) 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.
Visual Photonics Epitaxy Co (TPE:2455) has a ROIC % of 23.39% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Visual Photonics Epitaxy Co and its competitors.
Is Visual Photonics Epitaxy Co's ROIC % too high?
Visual Photonics Epitaxy Co's current ROIC % is 23.39%. The Semiconductors industry median ROIC % is 3.77. Visual Photonics Epitaxy Co's value of 23.39% is 520.4% above this industry median. Overall, Visual Photonics Epitaxy Co has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Visual Photonics Epitaxy Co's ROIC % compare to AMAT and LRCX?
Visual Photonics Epitaxy Co's ROIC % of 23.39% can be compared against companies in the Semiconductors industry. The industry median ROIC % is 3.77. Visual Photonics Epitaxy Co's value of 23.39% is 520.4% 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 Semiconductors company?
The median ROIC % among Semiconductors companies is 3.77, based on 1,011 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. Visual Photonics Epitaxy Co's current ROIC % of 23.39% is 520.4% 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 Visual Photonics Epitaxy Co and its competitors. For the Semiconductors industry, the median ROIC % is 3.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Visual Photonics Epitaxy Co's current ROIC % is 23.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Visual Photonics Epitaxy Co stock overvalued right now?
Based on GuruFocus' analysis, Visual Photonics Epitaxy Co (TPE:2455) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$194.67, compared to a current price of NT$314.50 — trading 61.6% above its estimated fair value. The current ROIC % is 23.39% and 520.4% above the Semiconductors industry median of 3.77. Visual Photonics Epitaxy Co's overall GF Score™ is 78/100 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 Visual Photonics Epitaxy Co (TPE:2455), the current ROIC % is 23.39% as of Mar. 2026. 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 Visual Photonics Epitaxy Co (TPE:2455) Overvalued in 2026?
Based on GuruFocus' analysis, Visual Photonics Epitaxy Co stock appears to be overvalued.
The current stock price of NT$314.50 is trading 61.6% above its estimated GF Value™ of NT$194.67.
GuruFocus considers Visual Photonics Epitaxy Co to be Significantly Overvalued.
Key valuation signals for TPE:2455:
ROIC %: 23.39%
GF Value™: NT$194.67 vs. price of NT$314.50 (61.6% above fair value)
Industry Position: 520.4% above the Semiconductors median
No single metric tells the full story. See the TPE:2455 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Visual Photonics Epitaxy Co Ltd is a Taiwan-based company that is principally engaged in developing, producing, and marketing of optoelectronic semiconductors epitaxy, optoelectronic components products. The company's products are used to provide solutions for wireless communications, optical fiber communications, and solar cell applications. Its products consist of GaAs Heterojunction Bipolar Transistor epi wafer, Low turn-on voltage gaAsSb HBT epi wafers, High-voltage gaAs HBT epi wafer, and InP HBT epi wafers, and others.
78GF Score
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