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As of today (2026-07-18), Taiwan Chinsan Electronic Industrial Co's weighted average cost of capital is 3.63%%. Taiwan Chinsan Electronic Industrial Co's ROIC % is 2.13% (calculated using TTM income statement data).
Taiwan Chinsan Electronic Industrial Co 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.
Taiwan Chinsan Electronic Industrial Co (ROCO:8042) 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, Taiwan Chinsan Electronic Industrial Co's weighted average cost of capital is 3.63%%. Taiwan Chinsan Electronic Industrial Co's ROIC % is 2.13% (calculated using TTM income statement data).
Taiwan Chinsan Electronic Industrial Co 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
Taiwan Chinsan Electronic Industrial Co WACC % 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.
Taiwan Chinsan Electronic Industrial Co WACC % Chart
Taiwan Chinsan Electronic Industrial Co Annual Data
For the Electronic Components subindustry, Taiwan Chinsan Electronic Industrial 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.
Taiwan Chinsan Electronic Industrial Co WACC % vs Hardware Industry
Taiwan Chinsan Electronic Industrial Co WACC % Calculation
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, Taiwan Chinsan Electronic Industrial Co's market capitalization (E) is NT$16765.400 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, Taiwan Chinsan Electronic Industrial Co's latest one-year quarterly average Book Value of Debt (D) is NT$3821.7054 Mil.
a) weight of equity = E / (E + D) = 16765.400 / (16765.400 + 3821.7054) = 0.8144
b) weight of debt = D / (E + D) = 3821.7054 / (16765.400 + 3821.7054) = 0.1856
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. Taiwan Chinsan Electronic Industrial Co's beta is -0.0627.
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% + -0.0627 * 6% = 4.1748%
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, Taiwan Chinsan Electronic Industrial Co's interest expense (positive number) was NT$67.725 Mil. Its total Book Value of Debt (D) is NT$3821.7054 Mil.
Cost of Debt = 67.725 / 3821.7054 = 1.7721%.
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 = 52.571 / 166.952 = 31.49%.
* 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 Chinsan Electronic Industrial Co (ROCO:8042) has a WACC % of 3.63% 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 Taiwan Chinsan Electronic Industrial Co and its competitors. This is 28% below median its historical median of 5.06. Over the past decade, Taiwan Chinsan Electronic Industrial Co's WACC % has ranged from 3.76 to 6.99. According to the industry distribution chart, Taiwan Chinsan Electronic Industrial Co ranks #455 out of 2517 companies in the Hardware industry, placing it in the top 18.1%.
Is Taiwan Chinsan Electronic Industrial Co's WACC % too high?
Taiwan Chinsan Electronic Industrial Co's current WACC % of 3.63% is 28% below median its 10-year median of 5.06. Over the past 10 years, this metric has ranged from a low of 3.76 to a high of 6.99. The Hardware industry median WACC % is 8.23. Taiwan Chinsan Electronic Industrial Co's value of 3.63% is 55.9% below this industry median. Based on the distribution chart, Taiwan Chinsan Electronic Industrial Co ranks #455 out of 2517 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Taiwan Chinsan Electronic Industrial Co has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Chinsan Electronic Industrial Co's WACC % compare to APH and GLW?
According to the Hardware industry distribution chart, Taiwan Chinsan Electronic Industrial Co ranks #455 out of 2517 companies for WACC %. This places Taiwan Chinsan Electronic Industrial Co in the top 18% of its industry — outperforming the majority of peers. The industry median WACC % is 8.23. Taiwan Chinsan Electronic Industrial Co's value of 3.63% is 55.9% below this benchmark. Historically, Taiwan Chinsan Electronic Industrial Co's own WACC % has ranged from 3.76 to 6.99 over the past decade. While the company's 10-year median is 5.06 vs. the industry median of 8.23, Taiwan Chinsan Electronic Industrial 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 Hardware company?
The median WACC % among Hardware companies is 8.23, based on 2,517 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. Taiwan Chinsan Electronic Industrial Co's current WACC % of 3.63% is 55.9% 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 Taiwan Chinsan Electronic Industrial Co and its competitors. For the Hardware industry, the median WACC % is 8.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Chinsan Electronic Industrial Co's current WACC % is 3.63%, which is 28% below median its own 10-year median of 5.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Chinsan Electronic Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Chinsan Electronic Industrial Co (ROCO:8042) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$41.73, compared to a current price of NT$129.50 — trading 210.3% above its estimated fair value. The current WACC % is 3.63%, which is 28% below median its 10-year median of 5.06 and 55.9% below the Hardware industry median of 8.23. Taiwan Chinsan Electronic Industrial Co's overall GF Score™ is 47/100 with 7 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 Taiwan Chinsan Electronic Industrial Co (ROCO:8042), the current WACC % is 3.63% 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 Taiwan Chinsan Electronic Industrial Co (ROCO:8042) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Chinsan Electronic Industrial Co stock appears to be overvalued.
The current stock price of NT$129.50 is trading 210.3% above its estimated GF Value™ of NT$41.73.
GuruFocus considers Taiwan Chinsan Electronic Industrial Co to be Significantly Overvalued.
Key valuation signals for ROCO:8042:
WACC %: 3.63% (28% below median its 10-year median of 5.06)
GF Value™: NT$41.73 vs. price of NT$129.50 (210.3% above fair value)
Industry Position: 55.9% below the Hardware median (#455 of 2517)
No single metric tells the full story. See the ROCO:8042 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Chinsan Electronic Industrial Co Business Description
Taiwan Chinsan Electronic Industrial Co Ltd is principally engaged in the manufacturing, processing, sale, and import and export of various electronic equipment and capacitors. The Group's only reportable operating segment is the electronic components segment, which is principally engaged in the manufacturing, processing, purchase, sale, import and export of various electronic equipment and capacitors. The company's product offerings include aluminum electrolytic capacitors, E-Cap SMD type (aluminum electrolytic SMD), radial lead type (general), radial lead type (low ESR), snap-in, lug terminal type, screw terminal type, aluminum polymer, polymer radial lead type, polymer SMD type, and other products.
47GF Score
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