Ta Chen Stainless Pipe CoTPE:2027 81 WACC % is 5.31% as of Jul. 11, 2026, which is 1% below its 10-year median of 5.38. GuruFocus rates TPE:2027 with a GF Score™ of 81/100 and a GF Value™ of NT$42.70 (Fairly Valued). The stock has 4 warning signs investors should review. Among 638 Steel companies, Ta Chen Stainless Pipe Co ranks better than 70.38% on this metric.
As of today (2026-07-11), Ta Chen Stainless Pipe Co's weighted average cost of capital is 5.31%%. Ta Chen Stainless Pipe Co's ROIC % is 8.57% (calculated using TTM income statement data).
Ta Chen Stainless Pipe 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.
Ta Chen Stainless Pipe Co (TPE:2027) 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, Ta Chen Stainless Pipe Co's weighted average cost of capital is 5.31%%. Ta Chen Stainless Pipe Co's ROIC % is 8.57% (calculated using TTM income statement data).
Ta Chen Stainless Pipe 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 Steel subindustry, Ta Chen Stainless Pipe 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.
Ta Chen Stainless Pipe Co WACC % vs Steel Industry
For the Steel industry and Basic Materials sector, Ta Chen Stainless Pipe Co's WACC % distribution charts can be found below:
* The bar in red indicates where Ta Chen Stainless Pipe 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, Ta Chen Stainless Pipe Co's market capitalization (E) is NT$94089.545 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, Ta Chen Stainless Pipe Co's latest one-year quarterly average Book Value of Debt (D) is NT$54184.6414 Mil.
a) weight of equity = E / (E + D) = 94089.545 / (94089.545 + 54184.6414) = 0.6346
b) weight of debt = D / (E + D) = 54184.6414 / (94089.545 + 54184.6414) = 0.3654
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 4.561%. 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. Ta Chen Stainless Pipe Co's beta is 0.4583.
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 = 4.561% + 0.4583 * 6% = 7.3108%
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, Ta Chen Stainless Pipe Co's interest expense (positive number) was NT$1305.156 Mil. Its total Book Value of Debt (D) is NT$54184.6414 Mil.
Cost of Debt = 1305.156 / 54184.6414 = 2.4087%.
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 = 2570.859 / 10769.842 = 23.87%.
* 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.
Ta Chen Stainless Pipe Co (TPE:2027) has a WACC % of 5.31% as of Jul. 11, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Ta Chen Stainless Pipe Co and its competitors. This is near median its historical median of 5.38. Over the past decade, Ta Chen Stainless Pipe Co's WACC % has ranged from 3.58 to 7.47. According to the industry distribution chart, Ta Chen Stainless Pipe Co ranks #189 out of 638 companies in the Steel industry, placing it in the top 29.6%.
Is Ta Chen Stainless Pipe Co's WACC % too high?
Ta Chen Stainless Pipe Co's current WACC % of 5.31% is near median its 10-year median of 5.38. Over the past 10 years, this metric has ranged from a low of 3.58 to a high of 7.47. The Steel industry median WACC % is 7.91. Ta Chen Stainless Pipe Co's value of 5.31% is 32.9% below this industry median. Based on the distribution chart, Ta Chen Stainless Pipe Co ranks #189 out of 638 companies in the Steel industry, which is above the industry midpoint. Overall, Ta Chen Stainless Pipe Co has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ta Chen Stainless Pipe Co's WACC % compare to NUE and STLD?
According to the Steel industry distribution chart, Ta Chen Stainless Pipe Co ranks #189 out of 638 companies for WACC %. This puts Ta Chen Stainless Pipe Co in the upper half of its industry. The industry median WACC % is 7.91. Ta Chen Stainless Pipe Co's value of 5.31% is 32.9% below this benchmark. Historically, Ta Chen Stainless Pipe Co's own WACC % has ranged from 3.58 to 7.47 over the past decade. While the company's 10-year median is 5.38 vs. the industry median of 7.91, Ta Chen Stainless Pipe 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 Steel company?
The median WACC % among Steel companies is 7.91, based on 638 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. Ta Chen Stainless Pipe Co's current WACC % of 5.31% is 32.9% 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 Ta Chen Stainless Pipe Co and its competitors. For the Steel industry, the median WACC % is 7.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ta Chen Stainless Pipe Co's current WACC % is 5.31%, which is near median its own 10-year median of 5.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ta Chen Stainless Pipe Co stock overvalued right now?
Based on GuruFocus' analysis, Ta Chen Stainless Pipe Co (TPE:2027) is currently considered Fairly Valued. The stock's GF Value™ is NT$42.70, compared to a current price of NT$40.00 — trading 6.3% below its estimated fair value. The current WACC % is 5.31%, which is near median its 10-year median of 5.38 and 32.9% below the Steel industry median of 7.91. Ta Chen Stainless Pipe Co's overall GF Score™ is 81/100 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 Ta Chen Stainless Pipe Co (TPE:2027), the current WACC % is 5.31% as of Jul. 11, 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 Ta Chen Stainless Pipe Co (TPE:2027) Overvalued in 2026?
Based on GuruFocus' analysis, Ta Chen Stainless Pipe Co stock appears to be undervalued.
The current stock price of NT$40.00 is trading 6.3% below its estimated GF Value™ of NT$42.70.
GuruFocus considers Ta Chen Stainless Pipe Co to be Fairly Valued.
Key valuation signals for TPE:2027:
WACC %: 5.31% (near median its 10-year median of 5.38)
GF Value™: NT$42.70 vs. price of NT$40.00 (6.3% below fair value)
Industry Position: 32.9% below the Steel median (#189 of 638)
No single metric tells the full story. See the TPE:2027 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ta Chen Stainless Pipe Co Ltd is engaged in the manufacturing, processing, and selling of stainless steel pipes and stainless steel pipe fittings, stainless steel plates, as well as the manufacturing and sale of venetian blinds. It is also engaged in the manufacturing and selling of aluminum products and the sale of screws and nuts. The Group's operating segments are: Stainless steel and aluminum, Aluminum manufacturing, Screws and nuts, and Curtain and decorations. The majority of its revenue is derived from the Stainless steel and aluminum segment, which offers stainless steel pipes, stainless steel pipe fittings, as well as stainless steel plates (rolls), bars, and aluminum products. Geographically, the Group generates maximum revenue from the USA, followed by Taiwan and other markets.
81GF Score
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