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Wafer WorksROCO:6182 -9.94%60 WACC % is 10.62% as of Jul. 18, 2026, which is 7% below its 10-year median of 11.36. GuruFocus rates ROCO:6182 with a GF Score™ of 60/100 and a GF Value™ of NT$33.54 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,032 Semiconductors companies, Wafer Works ranks worse than 63.18% on this metric.
As of today (2026-07-18), Wafer Works's weighted average cost of capital is 10.62%%. Wafer Works's ROIC % is 1.65% (calculated using TTM income statement data).
Wafer Works earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Wafer Works (ROCO:6182) 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, Wafer Works's weighted average cost of capital is 10.62%%. Wafer Works's ROIC % is 1.65% (calculated using TTM income statement data).
Wafer Works earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Related Terms
Wafer Works WACC % Historical Data
* Premium members only.
The historical data trend for Wafer Works's WACC % 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 Semiconductor Equipment & Materials subindustry, Wafer Works'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.
Wafer Works WACC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Wafer Works's WACC % distribution charts can be found below:
* The bar in red indicates where Wafer Works'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, Wafer Works's market capitalization (E) is NT$88743.397 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 Dec. 2025, Wafer Works's latest one-year quarterly average Book Value of Debt (D) is NT$6986.5322 Mil.
a) weight of equity = E / (E + D) = 88743.397 / (88743.397 + 6986.5322) = 0.927
b) weight of debt = D / (E + D) = 6986.5322 / (88743.397 + 6986.5322) = 0.073
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 4.551%. 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. Wafer Works's beta is 1.1318.
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 = 4.551% + 1.1318 * 6% = 11.3418%
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 Dec. 2025, Wafer Works's interest expense (positive number) was NT$135.911 Mil. Its total Book Value of Debt (D) is NT$6986.5322 Mil.
Cost of Debt = 135.911 / 6986.5322 = 1.9453%.
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 = 148.77 / 613.968 = 24.23%.
Wafer Works's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.927
*
11.3418%
+
0.073
*
1.9453%
*
(1 - 24.23%)
=
10.62%
* 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.
Wafer Works (ROCO:6182) has a WACC % of 10.62% as of Jul. 18, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Wafer Works and its competitors. This is near median its historical median of 11.36. Over the past decade, Wafer Works' WACC % has ranged from 5.19 to 13.61. According to the industry distribution chart, Wafer Works ranks #652 out of 1032 companies in the Semiconductors industry, placing it in the top 63.2%.
Is Wafer Works' WACC % too high?
Wafer Works' current WACC % of 10.62% is near median its 10-year median of 11.36. Over the past 10 years, this metric has ranged from a low of 5.19 to a high of 13.61. The Semiconductors industry median WACC % is 9.39. Wafer Works' value of 10.62% is 13.2% above this industry median. Based on the distribution chart, Wafer Works ranks #652 out of 1032 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Wafer Works has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Wafer Works' WACC % compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Wafer Works ranks #652 out of 1032 companies for WACC %. This places Wafer Works in the lower half of its industry. The industry median WACC % is 9.39. Wafer Works' value of 10.62% is 13.2% above this benchmark. Historically, Wafer Works' own WACC % has ranged from 5.19 to 13.61 over the past decade. While the company's 10-year median is 11.36 vs. the industry median of 9.39, Wafer Works has consistently been above 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 9.39, 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. Wafer Works's current WACC % of 10.62% is 13.2% 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 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 Wafer Works and its competitors. For the Semiconductors industry, the median WACC % is 9.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wafer Works's current WACC % is 10.62%, which is near median its own 10-year median of 11.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wafer Works stock overvalued right now?
Based on GuruFocus' analysis, Wafer Works (ROCO:6182) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$33.54, compared to a current price of NT$149.50 — trading 345.7% above its estimated fair value. The current WACC % is 10.62%, which is near median its 10-year median of 11.36 and 13.2% above the Semiconductors industry median of 9.39. Wafer Works' overall GF Score™ is 60/100 with 9 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 Wafer Works (ROCO:6182), the current WACC % is 10.62% as of Jul. 18, 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 Wafer Works (ROCO:6182) Overvalued in 2026?
Based on GuruFocus' analysis, Wafer Works stock appears to be overvalued.
The current stock price of NT$149.50 is trading 345.7% above its estimated GF Value™ of NT$33.54.
GuruFocus considers Wafer Works to be Significantly Overvalued.
Key valuation signals for ROCO:6182:
WACC %: 10.62% (near median its 10-year median of 11.36)
GF Value™: NT$33.54 vs. price of NT$149.50 (345.7% above fair value)
Industry Position: 13.2% above the Semiconductors median (#652 of 1032)
No single metric tells the full story. See the ROCO:6182 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wafer Works Corp is a Taiwan-based company principally engaged in the R&D, design, manufacturing, and sales of semiconductor materials; the technique consulting business, service business, and trading for the above items. Its customized silicon wafer services are Polished wafers, Leijingjingyuan, SOI wafers, Gallium nitride epitaxial wafers, and Custom wafers. Its geographical segments include Taiwan, China (including Hong Kong), the United States, and Other countries. It generates the majority of its revenue from Taiwan. The Group's revenue is derived from the manufacture and sale of semiconductor wafers.
60GF Score
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