Largan Precision CoTPE:3008 -1.51%80 WACC % is 4.4% as of Jul. 04, 2026, which is 59% below its 10-year median of 10.64. GuruFocus rates TPE:3008 with a GF Score™ of 80/100 and a GF Value™ of NT$2,814.25 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,515 Hardware companies, Largan Precision Co ranks better than 76.26% on this metric.
As of today (2026-07-04), Largan Precision Co's weighted average cost of capital is 4.4%%. Largan Precision Co's ROIC % is 28.70% (calculated using TTM income statement data).
Largan Precision 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.
Largan Precision Co (TPE:3008) 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, Largan Precision Co's weighted average cost of capital is 4.4%%. Largan Precision Co's ROIC % is 28.70% (calculated using TTM income statement data).
Largan Precision 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.
Related Terms
Largan Precision Co WACC % Historical Data
* Premium members only.
The historical data trend for Largan Precision Co'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 Electronic Components subindustry, Largan Precision 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.
Largan Precision Co WACC % vs Hardware Industry
For the Hardware industry and Technology sector, Largan Precision Co's WACC % distribution charts can be found below:
* The bar in red indicates where Largan Precision 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, Largan Precision Co's market capitalization (E) is NT$553276.373 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, Largan Precision Co's latest one-year quarterly average Book Value of Debt (D) is NT$245.8392 Mil.
a) weight of equity = E / (E + D) = 553276.373 / (553276.373 + 245.8392) = 0.9996
b) weight of debt = D / (E + D) = 245.8392 / (553276.373 + 245.8392) = 0.0004
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 4.485%. 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. Largan Precision Co's beta is -0.0137.
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 = 4.485% + -0.0137 * 6% = 4.4028%
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, Largan Precision Co's interest expense (positive number) was NT$1.509 Mil. Its total Book Value of Debt (D) is NT$245.8392 Mil.
Cost of Debt = 1.509 / 245.8392 = 0.6138%.
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 = 4339.953 / 25900.21 = 16.76%.
Largan Precision Co'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)
=
0.9996
*
4.4028%
+
0.0004
*
0.6138%
*
(1 - 16.76%)
=
4.4%
* 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.
Largan Precision Co (TPE:3008) has a WACC % of 4.4% as of Jul. 04, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Largan Precision Co and its competitors. This is 59% below median its historical median of 10.64. Over the past decade, Largan Precision Co's WACC % has ranged from 4.29 to 12.44. According to the industry distribution chart, Largan Precision Co ranks #597 out of 2515 companies in the Hardware industry, placing it in the top 23.7%.
Is Largan Precision Co's WACC % too high?
Largan Precision Co's current WACC % of 4.4% is 59% below median its 10-year median of 10.64. Over the past 10 years, this metric has ranged from a low of 4.29 to a high of 12.44. The Hardware industry median WACC % is 8.16. Largan Precision Co's value of 4.4% is 46.1% below this industry median. Based on the distribution chart, Largan Precision Co ranks #597 out of 2515 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Largan Precision Co has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Largan Precision Co's WACC % compare to APH and GLW?
According to the Hardware industry distribution chart, Largan Precision Co ranks #597 out of 2515 companies for WACC %. This places Largan Precision Co in the top 24% of its industry — outperforming the majority of peers. The industry median WACC % is 8.16. Largan Precision Co's value of 4.4% is 46.1% below this benchmark. Historically, Largan Precision Co's own WACC % has ranged from 4.29 to 12.44 over the past decade. While the company's 10-year median is 10.64 vs. the industry median of 8.16, Largan Precision 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 8.16, based on 2,515 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. Largan Precision Co's current WACC % of 4.4% is 46.1% 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 Largan Precision Co and its competitors. For the Hardware industry, the median WACC % is 8.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Largan Precision Co's current WACC % is 4.4%, which is 59% below median its own 10-year median of 10.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Largan Precision Co stock overvalued right now?
Based on GuruFocus' analysis, Largan Precision Co (TPE:3008) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$2,814.25, compared to a current price of NT$4,230.00 — trading 50.3% above its estimated fair value. The current WACC % is 4.4%, which is 59% below median its 10-year median of 10.64 and 46.1% below the Hardware industry median of 8.16. Largan Precision Co's overall GF Score™ is 80/100 with 8 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 Largan Precision Co (TPE:3008), the current WACC % is 4.4% as of Jul. 04, 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 Largan Precision Co (TPE:3008) Overvalued in 2026?
Based on GuruFocus' analysis, Largan Precision Co stock appears to be overvalued.
The current stock price of NT$4,230.00 is trading 50.3% above its estimated GF Value™ of NT$2,814.25.
GuruFocus considers Largan Precision Co to be Significantly Overvalued.
Key valuation signals for TPE:3008:
WACC %: 4.4% (59% below median its 10-year median of 10.64)
GF Value™: NT$2,814.25 vs. price of NT$4,230.00 (50.3% above fair value)
Industry Position: 46.1% below the Hardware median (#597 of 2515)
No single metric tells the full story. See the TPE:3008 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Largan Precision is the leader in optical lens technology and the world's largest handset lensmaker by value. The company boasts almost three decades of experience in the production of optical lenses, namely plastic aspherical lenses, which are widely used to manufacture smartphone cameras. It is a major supplier of high-end handset camera lenses to global smartphone brands such as Apple and Samsung. The firm also produces optical lenses for various applications, such as for automobiles, digital cameras, and extended reality headsets. Largan was co-founded in 1987 by Scott Lin, whose son Adam Lin serves as the current CEO and chair. Largan is headquartered and mainly operates in Taichung City, Taiwan, and employs around 8,000 people.
80GF Score
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