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5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Pegatron's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 24.57%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Pegatron's 5-Year ROIIC % or its related term are showing as below:
TPE:4938's 5-Year ROIIC % is ranked better than 78.94% of 2274
companies
in the Hardware industry
Industry Median: 3.305
vs TPE:4938: 24.57
Pegatron (TPE:4938) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Pegatron 5-Year ROIIC % Related Terms
Pegatron 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Pegatron's 5-Year ROIIC % 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.
TPE:4938 vs DELL, ANET, SNDK: 5-Year ROIIC % Comparison
For the Computer Hardware subindustry, Pegatron's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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.
Pegatron 5-Year ROIIC % vs Hardware Industry
For the Hardware industry and Technology sector, Pegatron's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Pegatron's 5-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Pegatron (TPE:4938) has a 5-Year ROIIC % of 24.57 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Pegatron and its competitors. According to the industry distribution chart, Pegatron ranks #479 out of 2274 companies in the Hardware industry, placing it in the top 21.1%.
Is Pegatron's 5-Year ROIIC % too high?
Pegatron's current 5-Year ROIIC % is 24.57. The Hardware industry median 5-Year ROIIC % is 3.31. Pegatron's value of 24.57 is 643.4% above this industry median. Based on the distribution chart, Pegatron ranks #479 out of 2274 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Pegatron has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pegatron's 5-Year ROIIC % compare to DELL and ANET?
According to the Hardware industry distribution chart, Pegatron ranks #479 out of 2274 companies for 5-Year ROIIC %. This places Pegatron in the top 21% of its industry — outperforming the majority of peers. The industry median 5-Year ROIIC % is 3.31. Pegatron's value of 24.57 is 643.4% 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 5-Year ROIIC % for a Hardware company?
The median 5-Year ROIIC % among Hardware companies is 3.31, based on 2,274 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pegatron's current 5-Year ROIIC % of 24.57 is 643.4% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Pegatron and its competitors. For the Hardware industry, the median 5-Year ROIIC % is 3.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pegatron's current 5-Year ROIIC % is 24.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pegatron stock overvalued right now?
Based on GuruFocus' analysis, Pegatron (TPE:4938) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$78.77, compared to a current price of NT$87.40 — trading 11% above its estimated fair value. The current 5-Year ROIIC % is 24.57 and 643.4% above the Hardware industry median of 3.31. Pegatron's overall GF Score™ is 69/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Pegatron (TPE:4938), the current 5-Year ROIIC % is 24.57 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 Pegatron (TPE:4938) Overvalued in 2026?
Based on GuruFocus' analysis, Pegatron stock appears to be overvalued.
The current stock price of NT$87.40 is trading 11% above its estimated GF Value™ of NT$78.77.
GuruFocus considers Pegatron to be Modestly Overvalued.
Key valuation signals for TPE:4938:
5-Year ROIIC %: 24.57
GF Value™: NT$78.77 vs. price of NT$87.40 (11% above fair value)
Industry Position: 643.4% above the Hardware median (#479 of 2274)
No single metric tells the full story. See the TPE:4938 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pegatron Corp is engaged in the design, manufacture, and sale of OEM products. The Group operates through two segments: DMS (Design, Manufacturing and Service) and the Strategic Investment Group. The DMS segment focuses on designing and manufacturing computer, communication, and consumer electronics end products, as well as providing after-sales services, and generates the majority of the Group's revenue. The Strategic Investment Group is involved in upstream and downstream supply chain activities, strategic investments, and other related investment operations. Geographically, the Group generates the majority of its revenue from Taiwan.
69GF Score
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