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 Surface Mounting Technology's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 12.30%.
As of today (2026-07-03), Taiwan Surface Mounting Technology's WACC % is 1.73%. Taiwan Surface Mounting Technology's ROIC % is 13.93% (calculated using TTM income statement data).
Taiwan Surface Mounting Technology 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 Surface Mounting Technology's WACC % is 1.73%. Taiwan Surface Mounting Technology's ROIC % is 13.93% (calculated using TTM income statement data).
Taiwan Surface Mounting Technology 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 Surface Mounting Technology ROIC % Related Terms
Taiwan Surface Mounting Technology 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 Semiconductors subindustry, Taiwan Surface Mounting Technology'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 Surface Mounting Technology ROIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Surface Mounting Technology's ROIC % distribution charts can be found below:
* The bar in red indicates where Taiwan Surface Mounting Technology'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.
Taiwan Surface Mounting Technology (TPE:6278) has a ROIC % of 12.30% 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 Surface Mounting Technology and its competitors.
Is Taiwan Surface Mounting Technology's ROIC % too high?
Taiwan Surface Mounting Technology's current ROIC % is 12.30%. The Semiconductors industry median ROIC % is 3.74. Taiwan Surface Mounting Technology's value of 12.30% is 228.9% above this industry median. Overall, Taiwan Surface Mounting Technology has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Surface Mounting Technology's ROIC % compare to NVDA and AVGO?
Taiwan Surface Mounting Technology's ROIC % of 12.30% can be compared against companies in the Semiconductors industry. The industry median ROIC % is 3.74. Taiwan Surface Mounting Technology's value of 12.30% is 228.9% 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 a Semiconductors company?
The median ROIC % among Semiconductors companies is 3.74, based on 1,010 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. Taiwan Surface Mounting Technology's current ROIC % of 12.30% is 228.9% 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 Taiwan Surface Mounting Technology and its competitors. For the Semiconductors industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Surface Mounting Technology's current ROIC % is 12.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Surface Mounting Technology stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Surface Mounting Technology (TPE:6278) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$109.85, compared to a current price of NT$217.00 — trading 97.5% above its estimated fair value. The current ROIC % is 12.30% and 228.9% above the Semiconductors industry median of 3.74. Taiwan Surface Mounting Technology's overall GF Score™ is 68/100 with 1 warning sign 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 Surface Mounting Technology (TPE:6278), the current ROIC % is 12.30% 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 Surface Mounting Technology (TPE:6278) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Surface Mounting Technology stock appears to be overvalued.
The current stock price of NT$217.00 is trading 97.5% above its estimated GF Value™ of NT$109.85.
GuruFocus considers Taiwan Surface Mounting Technology to be Significantly Overvalued.
Key valuation signals for TPE:6278:
ROIC %: 12.30%
GF Value™: NT$109.85 vs. price of NT$217.00 (97.5% above fair value)
Industry Position: 228.9% above the Semiconductors median
No single metric tells the full story. See the TPE:6278 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Surface Mounting Technology Business Description
Taiwan Surface Mounting Technology Corp is engaged in the design, processing, manufacturing, and trading of TFT-LCD panels, general electronic information products, and PCB surface-mount packaging. Its Surface Mounting Technology is widely used for IT and electronic products. The products provided include Control boards for TFT-LCD panels (TV/Desk Top/ Note books), other electronic products, and light bars.
68GF Score
Get the complete analysis for TPE:6278
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TPE:6278 has been successfully added to your 
