ASE Technology Holding CoMEX:ASEH N 67 WACC % is 4.05% as of Jun. 27, 2026, which is 52% below its 10-year median of 8.49. GuruFocus rates MEX:ASEH N with a GF Score™ of 67/100 and a GF Value™ of MXN198.52 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,032 Semiconductors companies, ASE Technology Holding Co ranks better than 89.92% on this metric.
As of today (2026-06-27), ASE Technology Holding Co's weighted average cost of capital is 4.05%%. ASE Technology Holding Co's ROIC % is 6.85% (calculated using TTM income statement data).
ASE Technology Holding 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
ASE Technology Holding Co (MEX:ASEH N) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % 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, ASE Technology Holding Co's weighted average cost of capital is 4.05%%. ASE Technology Holding Co's ROIC % is 6.85% (calculated using TTM income statement data).
ASE Technology Holding 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
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
* 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, ASE Technology Holding Co's WACC %, along with its competitors' market caps and WACC % 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.
ASE Technology Holding Co WACC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, ASE Technology Holding Co's WACC % distribution charts can be found below:
* The bar in red indicates where ASE Technology Holding Co's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, ASE Technology Holding Co's market capitalization (E) is MXN1533571.050 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, ASE Technology Holding Co's latest one-year quarterly average Book Value of Debt (D) is MXN151219.8514 Mil.
a) weight of equity = E / (E + D) = 1533571.050 / (1533571.050 + 151219.8514) = 0.9102
b) weight of debt = D / (E + D) = 151219.8514 / (1533571.050 + 151219.8514) = 0.0898
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.376%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. ASE Technology Holding Co's beta is -0.0310.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.376% + -0.0310 * 6% = 4.19%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, ASE Technology Holding Co's interest expense (positive number) was MXN4847.875 Mil. Its total Book Value of Debt (D) is MXN151219.8514 Mil.
Cost of Debt = 4847.875 / 151219.8514 = 3.2058%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 6874.337 / 35110.751 = 19.58%.
* 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.
ASE Technology Holding Co (MEX:ASEH N) has a WACC % of 4.05% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on ASE Technology Holding Co and its competitors. This is 52% below median its historical median of 8.49. Over the past decade, ASE Technology Holding Co's WACC % has ranged from 2.79 to 10.10. According to the industry distribution chart, ASE Technology Holding Co ranks #104 out of 1032 companies in the Semiconductors industry, placing it in the top 10.1%.
Is ASE Technology Holding Co's WACC % too high?
ASE Technology Holding Co's current WACC % of 4.05% is 52% below median its 10-year median of 8.49. Over the past 10 years, this metric has ranged from a low of 2.79 to a high of 10.10. The Semiconductors industry median WACC % is 9.48. ASE Technology Holding Co's value of 4.05% is 57.3% below this industry median. Based on the distribution chart, ASE Technology Holding Co ranks #104 out of 1032 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, ASE Technology Holding Co has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ASE Technology Holding Co's WACC % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, ASE Technology Holding Co ranks #104 out of 1032 companies for WACC %. This places ASE Technology Holding Co in the top 10% of its industry — outperforming the majority of peers. The industry median WACC % is 9.48. ASE Technology Holding Co's value of 4.05% is 57.3% below this benchmark. Historically, ASE Technology Holding Co's own WACC % has ranged from 2.79 to 10.10 over the past decade. While the company's 10-year median is 8.49 vs. the industry median of 9.48, ASE Technology Holding Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Semiconductors company?
The median WACC % among Semiconductors companies is 9.48, based on 1,032 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ASE Technology Holding Co's current WACC % of 4.05% is 57.3% below 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 WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on ASE Technology Holding Co and its competitors. For the Semiconductors industry, the median WACC % is 9.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ASE Technology Holding Co's current WACC % is 4.05%, which is 52% below median its own 10-year median of 8.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ASE Technology Holding Co stock overvalued right now?
Based on GuruFocus' analysis, ASE Technology Holding Co (MEX:ASEH N) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN198.52, compared to a current price of MXN699.00 — trading 252.1% above its estimated fair value. The current WACC % is 4.05%, which is 52% below median its 10-year median of 8.49 and 57.3% below the Semiconductors industry median of 9.48. ASE Technology Holding Co's overall GF Score™ is 67/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For ASE Technology Holding Co (MEX:ASEH N), the current WACC % is 4.05% as of Jun. 27, 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 ASE Technology Holding Co (MEX:ASEH N) Overvalued in 2026?
Based on GuruFocus' analysis, ASE Technology Holding Co stock appears to be overvalued.
The current stock price of MXN699.00 is trading 252.1% above its estimated GF Value™ of MXN198.52.
GuruFocus considers ASE Technology Holding Co to be Significantly Overvalued.
Key valuation signals for MEX:ASEH N:
WACC %: 4.05% (52% below median its 10-year median of 8.49)
GF Value™: MXN198.52 vs. price of MXN699.00 (252.1% above fair value)
Industry Position: 57.3% below the Semiconductors median (#104 of 1032)
No single metric tells the full story. See the MEX:ASEH N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ASE Technology Holding Co Ltd is a semiconductor assembly and testing firm. The company operates in segments: Packaging, Testing, Electronic Manufacturing Services and others. Of these, Packaging segment contribute the maximum revenue. The packaging segment involves packaging bare semiconductors into completed semiconductors with improved electrical and thermal characteristics. The Testing Segment includes front-end engineering testing, wafer probing, and final testing services. In the EMS segment, the company designs manufactures, and sells electronic components and telecommunication equipment motherboards. The company is based in Taiwan but generates over half its sales from firms in the United States.
67GF Score
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