Chia Hsin CementTPE:1103 +0.73%58 WACC % is 3.19% as of Jul. 07, 2026, which is 42% below its 10-year median of 5.50. GuruFocus rates TPE:1103 with a GF Score™ of 58/100 and a GF Value™ of NT$18.96 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 415 Building Materials companies, Chia Hsin Cement ranks better than 91.81% on this metric.
As of today (2026-07-07), Chia Hsin Cement's weighted average cost of capital is 3.19%%. Chia Hsin Cement's ROIC % is -0.30% (calculated using TTM income statement data).
Chia Hsin Cement 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.
Chia Hsin Cement (TPE:1103) 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, Chia Hsin Cement's weighted average cost of capital is 3.19%%. Chia Hsin Cement's ROIC % is -0.30% (calculated using TTM income statement data).
Chia Hsin Cement 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
Chia Hsin Cement WACC % Historical Data
* Premium members only.
The historical data trend for Chia Hsin Cement'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 Building Materials subindustry, Chia Hsin Cement'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.
Chia Hsin Cement WACC % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Chia Hsin Cement's WACC % distribution charts can be found below:
* The bar in red indicates where Chia Hsin Cement'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, Chia Hsin Cement's market capitalization (E) is NT$9057.881 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, Chia Hsin Cement's latest one-year quarterly average Book Value of Debt (D) is NT$11405.5824 Mil.
a) weight of equity = E / (E + D) = 9057.881 / (9057.881 + 11405.5824) = 0.4426
b) weight of debt = D / (E + D) = 11405.5824 / (9057.881 + 11405.5824) = 0.5574
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 4.477%. 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. Chia Hsin Cement's beta is 0.0242.
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 = 4.477% + 0.0242 * 6% = 4.6222%
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, Chia Hsin Cement's interest expense (positive number) was NT$233.445 Mil. Its total Book Value of Debt (D) is NT$11405.5824 Mil.
Cost of Debt = 233.445 / 11405.5824 = 2.0468%.
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 = -7.52 / 559.376 = -1.34%, which is less than 0%. Therefore it's set to 0%.
Chia Hsin Cement'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)
=
0.4426
*
4.6222%
+
0.5574
*
2.0468%
*
(1 - 0%)
=
3.19%
* 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.
Chia Hsin Cement (TPE:1103) has a WACC % of 3.19% as of Jul. 07, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Chia Hsin Cement and its competitors. This is 42% below median its historical median of 5.50. Over the past decade, Chia Hsin Cement's WACC % has ranged from 3.19 to 6.11. According to the industry distribution chart, Chia Hsin Cement ranks #34 out of 415 companies in the Building Materials industry, placing it in the top 8.2%.
Is Chia Hsin Cement's WACC % too high?
Chia Hsin Cement's current WACC % of 3.19% is 42% below median its 10-year median of 5.50. Over the past 10 years, this metric has ranged from a low of 3.19 to a high of 6.11. The Building Materials industry median WACC % is 8.41. Chia Hsin Cement's value of 3.19% is 62.1% below this industry median. Based on the distribution chart, Chia Hsin Cement ranks #34 out of 415 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Chia Hsin Cement has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chia Hsin Cement's WACC % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Chia Hsin Cement ranks #34 out of 415 companies for WACC %. This places Chia Hsin Cement in the top 8% of its industry — outperforming the majority of peers. The industry median WACC % is 8.41. Chia Hsin Cement's value of 3.19% is 62.1% below this benchmark. Historically, Chia Hsin Cement's own WACC % has ranged from 3.19 to 6.11 over the past decade. While the company's 10-year median is 5.50 vs. the industry median of 8.41, Chia Hsin Cement 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 Building Materials company?
The median WACC % among Building Materials companies is 8.41, based on 415 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. Chia Hsin Cement's current WACC % of 3.19% is 62.1% 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 Chia Hsin Cement and its competitors. For the Building Materials industry, the median WACC % is 8.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chia Hsin Cement's current WACC % is 3.19%, which is 42% below median its own 10-year median of 5.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chia Hsin Cement stock overvalued right now?
Based on GuruFocus' analysis, Chia Hsin Cement (TPE:1103) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$18.96, compared to a current price of NT$13.75 — trading 27.5% below its estimated fair value. The current WACC % is 3.19%, which is 42% below median its 10-year median of 5.50 and 62.1% below the Building Materials industry median of 8.41. Chia Hsin Cement's overall GF Score™ is 58/100 with 4 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 Chia Hsin Cement (TPE:1103), the current WACC % is 3.19% as of Jul. 07, 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 Chia Hsin Cement (TPE:1103) Overvalued in 2026?
Based on GuruFocus' analysis, Chia Hsin Cement stock appears to be undervalued.
The current stock price of NT$13.75 is trading 27.5% below its estimated GF Value™ of NT$18.96.
GuruFocus considers Chia Hsin Cement to be Modestly Undervalued.
Key valuation signals for TPE:1103:
WACC %: 3.19% (42% below median its 10-year median of 5.50)
GF Value™: NT$18.96 vs. price of NT$13.75 (27.5% below fair value)
Industry Position: 62.1% below the Building Materials median (#34 of 415)
No single metric tells the full story. See the TPE:1103 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chia Hsin Cement Corp is engaged in cement manufacturing, wholesale of building materials, retail sale of building materials, non-metallic mining, international trade, real estate commerce, real estate rental and leasing, reconstruction within the renewal area, warehousing and storage, and Others. Its segments include: the Cement, which is responsible for cement sales; the Asset Management, which handles real estate trading and leasing; the Warehousing and Storage, which manages loading and unloading as well as warehousing and storage services at the port; and the Hospitality and Catering Services, which focuses on catering and room service in hotels, along with services for maternal and childcare centers. The majority of the company's revenue comes from the Cement segment.
58GF Score
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