Winbond ElectronicsTPE:2344 -8.43%64 WACC % is 3.18% as of Jul. 01, 2026, which is 65% below its 10-year median of 9.09. GuruFocus rates TPE:2344 with a GF Score™ of 64/100 and a GF Value™ of NT$46.96 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,031 Semiconductors companies, Winbond Electronics ranks better than 88.36% on this metric.
As of today (2026-07-01), Winbond Electronics's weighted average cost of capital is 3.18%%. Winbond Electronics's ROIC % is 2.70% (calculated using TTM income statement data).
Winbond Electronics 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.
Winbond Electronics (TPE:2344) 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, Winbond Electronics's weighted average cost of capital is 3.18%%. Winbond Electronics's ROIC % is 2.70% (calculated using TTM income statement data).
Winbond Electronics 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
Winbond Electronics WACC % Historical Data
* Premium members only.
The historical data trend for Winbond Electronics'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 Semiconductors subindustry, Winbond Electronics'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.
Winbond Electronics WACC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Winbond Electronics's WACC % distribution charts can be found below:
* The bar in red indicates where Winbond Electronics'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, Winbond Electronics's market capitalization (E) is NT$855000.037 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, Winbond Electronics's latest one-year quarterly average Book Value of Debt (D) is NT$58533.9946 Mil.
a) weight of equity = E / (E + D) = 855000.037 / (855000.037 + 58533.9946) = 0.9359
b) weight of debt = D / (E + D) = 58533.9946 / (855000.037 + 58533.9946) = 0.0641
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 4.481%. 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. Winbond Electronics's beta is -0.2000.
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 = 4.481% + -0.2000 * 6% = 3.281%
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, Winbond Electronics's interest expense (positive number) was NT$1387.102 Mil. Its total Book Value of Debt (D) is NT$58533.9946 Mil.
Cost of Debt = 1387.102 / 58533.9946 = 2.3697%.
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 = 1433.037 / 4610.485 = 31.08%.
Winbond Electronics'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)
=
0.9359
*
3.281%
+
0.0641
*
2.3697%
*
(1 - 31.08%)
=
3.18%
* 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.
Winbond Electronics (TPE:2344) has a WACC % of 3.18% as of Jul. 01, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Winbond Electronics and its competitors. This is 65% below median its historical median of 9.09. Over the past decade, Winbond Electronics' WACC % has ranged from 3.08 to 10.65. According to the industry distribution chart, Winbond Electronics ranks #120 out of 1031 companies in the Semiconductors industry, placing it in the top 11.6%.
Is Winbond Electronics' WACC % too high?
Winbond Electronics' current WACC % of 3.18% is 65% below median its 10-year median of 9.09. Over the past 10 years, this metric has ranged from a low of 3.08 to a high of 10.65. The Semiconductors industry median WACC % is 9.31. Winbond Electronics' value of 3.18% is 65.8% below this industry median. Based on the distribution chart, Winbond Electronics ranks #120 out of 1031 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Winbond Electronics has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Winbond Electronics' WACC % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Winbond Electronics ranks #120 out of 1031 companies for WACC %. This places Winbond Electronics in the top 12% of its industry — outperforming the majority of peers. The industry median WACC % is 9.31. Winbond Electronics' value of 3.18% is 65.8% below this benchmark. Historically, Winbond Electronics' own WACC % has ranged from 3.08 to 10.65 over the past decade. While the company's 10-year median is 9.09 vs. the industry median of 9.31, Winbond Electronics 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 Semiconductors company?
The median WACC % among Semiconductors companies is 9.31, based on 1,031 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. Winbond Electronics's current WACC % of 3.18% is 65.8% 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 Winbond Electronics and its competitors. For the Semiconductors industry, the median WACC % is 9.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Winbond Electronics's current WACC % is 3.18%, which is 65% below median its own 10-year median of 9.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Winbond Electronics stock overvalued right now?
Based on GuruFocus' analysis, Winbond Electronics (TPE:2344) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$46.96, compared to a current price of NT$190.00 — trading 304.6% above its estimated fair value. The current WACC % is 3.18%, which is 65% below median its 10-year median of 9.09 and 65.8% below the Semiconductors industry median of 9.31. Winbond Electronics' overall GF Score™ is 64/100 with 10 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 Winbond Electronics (TPE:2344), the current WACC % is 3.18% as of Jul. 01, 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 Winbond Electronics (TPE:2344) Overvalued in 2026?
Based on GuruFocus' analysis, Winbond Electronics stock appears to be overvalued.
The current stock price of NT$190.00 is trading 304.6% above its estimated GF Value™ of NT$46.96.
GuruFocus considers Winbond Electronics to be Significantly Overvalued.
Key valuation signals for TPE:2344:
WACC %: 3.18% (65% below median its 10-year median of 9.09)
GF Value™: NT$46.96 vs. price of NT$190.00 (304.6% above fair value)
Industry Position: 65.8% below the Semiconductors median (#120 of 1031)
No single metric tells the full story. See the TPE:2344 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Winbond Electronics Corp is engaged in the design, development, manufacture, and marketing of very large scale integration (VLSI) integrated circuits (ICs) used in a variety of microelectronic applications. In addition, it offers customised memory solutions like Mobile RAM and Specialty DRAM, and core storage flash memory products. The company's operating segments are Customized Memory Solution product, Flash Memory product, and Logic IC product. Maximum revenue is generated from the Flash Memory product segment, which engages mainly in the manufacturing, selling, researching, designing and after-sales service of Flash Memory product. Geographically, the company generates maximum revenue from Asia, followed by America, Europe, and Other regions.
64GF Score
Get the complete analysis for TPE:2344
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TPE:2344 has been successfully added to your 
