Shinkong Synthetic FiberTPE:1409 +4.79%55 WACC % is 3.46% as of Jul. 07, 2026, which is 14% below its 10-year median of 4.00. GuruFocus rates TPE:1409 with a GF Score™ of 55/100 and a GF Value™ of NT$14.34 (Significantly Overvalued). The stock has 13 warning signs investors should review. Among 1,076 Manufacturing - Apparel & Accessories companies, Shinkong Synthetic Fiber ranks better than 87.17% on this metric.
As of today (2026-07-07), Shinkong Synthetic Fiber's weighted average cost of capital is 3.46%%. Shinkong Synthetic Fiber's ROIC % is 1.86% (calculated using TTM income statement data).
Shinkong Synthetic Fiber 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.
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, Shinkong Synthetic Fiber's weighted average cost of capital is 3.46%%. Shinkong Synthetic Fiber's ROIC % is 1.86% (calculated using TTM income statement data).
Shinkong Synthetic Fiber 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.
* 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 Textile Manufacturing subindustry, Shinkong Synthetic Fiber'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.
Shinkong Synthetic Fiber WACC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Shinkong Synthetic Fiber's WACC % distribution charts can be found below:
* The bar in red indicates where Shinkong Synthetic Fiber'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, Shinkong Synthetic Fiber's market capitalization (E) is NT$50717.378 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, Shinkong Synthetic Fiber's latest one-year quarterly average Book Value of Debt (D) is NT$62715.583 Mil.
a) weight of equity = E / (E + D) = 50717.378 / (50717.378 + 62715.583) = 0.4471
b) weight of debt = D / (E + D) = 62715.583 / (50717.378 + 62715.583) = 0.5529
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 4.547%. 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. Shinkong Synthetic Fiber's beta is -0.1181.
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 = 4.547% + -0.1181 * 6% = 3.8384%
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, Shinkong Synthetic Fiber's interest expense (positive number) was NT$2326.196 Mil. Its total Book Value of Debt (D) is NT$62715.583 Mil.
Cost of Debt = 2326.196 / 62715.583 = 3.7091%.
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 = 431.813 / 2908.57 = 14.85%.
* 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.
Shinkong Synthetic Fiber (TPE:1409) has a WACC % of 3.46% 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 Shinkong Synthetic Fiber and its competitors. This is 14% below median its historical median of 4.00. Over the past decade, Shinkong Synthetic Fiber's WACC % has ranged from 3.32 to 5.10. According to the industry distribution chart, Shinkong Synthetic Fiber ranks #138 out of 1076 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 12.8%.
Is Shinkong Synthetic Fiber's WACC % too high?
Shinkong Synthetic Fiber's current WACC % of 3.46% is 14% below median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 3.32 to a high of 5.10. The Manufacturing - Apparel & Accessories industry median WACC % is 8.45. Shinkong Synthetic Fiber's value of 3.46% is 59% below this industry median. Based on the distribution chart, Shinkong Synthetic Fiber ranks #138 out of 1076 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Shinkong Synthetic Fiber has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shinkong Synthetic Fiber's WACC % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Shinkong Synthetic Fiber ranks #138 out of 1076 companies for WACC %. This places Shinkong Synthetic Fiber in the top 13% of its industry — outperforming the majority of peers. The industry median WACC % is 8.45. Shinkong Synthetic Fiber's value of 3.46% is 59% below this benchmark. Historically, Shinkong Synthetic Fiber's own WACC % has ranged from 3.32 to 5.10 over the past decade. While the company's 10-year median is 4.00 vs. the industry median of 8.45, Shinkong Synthetic Fiber 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 Manufacturing - Apparel & Accessories company?
The median WACC % among Manufacturing - Apparel & Accessories companies is 8.45, based on 1,076 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. Shinkong Synthetic Fiber's current WACC % of 3.46% is 59% 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 Shinkong Synthetic Fiber and its competitors. For the Manufacturing - Apparel & Accessories industry, the median WACC % is 8.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shinkong Synthetic Fiber's current WACC % is 3.46%, which is 14% below median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinkong Synthetic Fiber stock overvalued right now?
Based on GuruFocus' analysis, Shinkong Synthetic Fiber (TPE:1409) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$14.34, compared to a current price of NT$31.70 — trading 121.1% above its estimated fair value. The current WACC % is 3.46%, which is 14% below median its 10-year median of 4.00 and 59% below the Manufacturing - Apparel & Accessories industry median of 8.45. Shinkong Synthetic Fiber's overall GF Score™ is 55/100 with 13 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 Shinkong Synthetic Fiber (TPE:1409), the current WACC % is 3.46% 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 Shinkong Synthetic Fiber (TPE:1409) Overvalued in 2026?
Based on GuruFocus' analysis, Shinkong Synthetic Fiber stock appears to be overvalued.
The current stock price of NT$31.70 is trading 121.1% above its estimated GF Value™ of NT$14.34.
GuruFocus considers Shinkong Synthetic Fiber to be Significantly Overvalued.
Key valuation signals for TPE:1409:
WACC %: 3.46% (14% below median its 10-year median of 4.00)
GF Value™: NT$14.34 vs. price of NT$31.70 (121.1% above fair value)
Industry Position: 59% below the Manufacturing - Apparel & Accessories median (#138 of 1076)
No single metric tells the full story. See the TPE:1409 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shinkong Synthetic Fiber Corp manufactures and sells polyester polymers, polyester staple fibers, polyester textured yarns, polyester chips, pre-oriented yarns, polyester flat yarns, polyethylene terephthalate (PET) resins used in PET bottles and polyester base films. The company's PET fiber products can mainly be categorized into industrial yarn, partially oriented yarn (POY), Spin draw yarn (SDY), polyester staple fiber (PSF), and draw textured yarn (DTY). Its plastic products include polyester resin, bottle grade polyester resin , PET bottle preforms, PET bottles, Engineering polymers, and PE sheets. Its segments include Polyester, Finance and Securities, and Optronics of which the Polyester segment derives the majority of the revenue.
55GF Score
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