As of today (2026-07-09), Young Fast Optoelectronics Co's weighted average cost of capital is 4.01%%. Young Fast Optoelectronics Co's ROIC % is 16.82% (calculated using TTM income statement data).
Young Fast Optoelectronics 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.
Young Fast Optoelectronics Co (TPE:3622) 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, Young Fast Optoelectronics Co's weighted average cost of capital is 4.01%%. Young Fast Optoelectronics Co's ROIC % is 16.82% (calculated using TTM income statement data).
Young Fast Optoelectronics 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
Young Fast Optoelectronics Co WACC % Historical Data
* 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, Young Fast Optoelectronics 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.
Young Fast Optoelectronics Co WACC % vs Hardware Industry
For the Hardware industry and Technology sector, Young Fast Optoelectronics Co's WACC % distribution charts can be found below:
* The bar in red indicates where Young Fast Optoelectronics 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, Young Fast Optoelectronics Co's market capitalization (E) is NT$8504.639 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, Young Fast Optoelectronics Co's latest one-year quarterly average Book Value of Debt (D) is NT$84.539 Mil.
a) weight of equity = E / (E + D) = 8504.639 / (8504.639 + 84.539) = 0.9902
b) weight of debt = D / (E + D) = 84.539 / (8504.639 + 84.539) = 0.0098
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 4.577%. 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. Young Fast Optoelectronics Co's beta is -0.0933.
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 = 4.577% + -0.0933 * 6% = 4.0172%
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, Young Fast Optoelectronics Co's interest expense (positive number) was NT$2.934 Mil. Its total Book Value of Debt (D) is NT$84.539 Mil.
Cost of Debt = 2.934 / 84.539 = 3.4706%.
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 = 68.31 / 1038.301 = 6.58%.
* 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.
Young Fast Optoelectronics Co (TPE:3622) has a WACC % of 4.01% as of Jul. 09, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Young Fast Optoelectronics Co and its competitors. This is 61% below median its historical median of 10.17. Over the past decade, Young Fast Optoelectronics Co's WACC % has ranged from 3.92 to 16.74. According to the industry distribution chart, Young Fast Optoelectronics Co ranks #495 out of 2509 companies in the Hardware industry, placing it in the top 19.7%.
Is Young Fast Optoelectronics Co's WACC % too high?
Young Fast Optoelectronics Co's current WACC % of 4.01% is 61% below median its 10-year median of 10.17. Over the past 10 years, this metric has ranged from a low of 3.92 to a high of 16.74. The Hardware industry median WACC % is 8.23. Young Fast Optoelectronics Co's value of 4.01% is 51.3% below this industry median. Based on the distribution chart, Young Fast Optoelectronics Co ranks #495 out of 2509 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Young Fast Optoelectronics Co has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Young Fast Optoelectronics Co's WACC % compare to APH and GLW?
According to the Hardware industry distribution chart, Young Fast Optoelectronics Co ranks #495 out of 2509 companies for WACC %. This places Young Fast Optoelectronics Co in the top 20% of its industry — outperforming the majority of peers. The industry median WACC % is 8.23. Young Fast Optoelectronics Co's value of 4.01% is 51.3% below this benchmark. Historically, Young Fast Optoelectronics Co's own WACC % has ranged from 3.92 to 16.74 over the past decade. While the company's 10-year median is 10.17 vs. the industry median of 8.23, Young Fast Optoelectronics 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 8.23, based on 2,509 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. Young Fast Optoelectronics Co's current WACC % of 4.01% is 51.3% 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 Young Fast Optoelectronics Co and its competitors. For the Hardware industry, the median WACC % is 8.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Young Fast Optoelectronics Co's current WACC % is 4.01%, which is 61% below median its own 10-year median of 10.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Young Fast Optoelectronics Co stock overvalued right now?
Based on GuruFocus' analysis, Young Fast Optoelectronics Co (TPE:3622) is currently considered Fairly Valued. The stock's GF Value™ is NT$58.28, compared to a current price of NT$56.20 — trading 3.6% below its estimated fair value. The current WACC % is 4.01%, which is 61% below median its 10-year median of 10.17 and 51.3% below the Hardware industry median of 8.23. Young Fast Optoelectronics Co's overall GF Score™ is 89/100 with 3 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 Young Fast Optoelectronics Co (TPE:3622), the current WACC % is 4.01% as of Jul. 09, 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 Young Fast Optoelectronics Co (TPE:3622) Overvalued in 2026?
Based on GuruFocus' analysis, Young Fast Optoelectronics Co stock appears to be undervalued.
The current stock price of NT$56.20 is trading 3.6% below its estimated GF Value™ of NT$58.28.
GuruFocus considers Young Fast Optoelectronics Co to be Fairly Valued.
Key valuation signals for TPE:3622:
WACC %: 4.01% (61% below median its 10-year median of 10.17)
GF Value™: NT$58.28 vs. price of NT$56.20 (3.6% below fair value)
Industry Position: 51.3% below the Hardware median (#495 of 2509)
No single metric tells the full story. See the TPE:3622 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Young Fast Optoelectronics Co Business Description
Young Fast Optoelectronics Co Ltd engages in the research and development, manufacturing, and sales of various types of touch panels. The reporting segments of the company are divided into the Electromechanical Business Group and the Optoelectronics Business Group. The majority of the company's revenue is generated from its Electromechanical Business Group, which is mainly engaged in the manufacture of power cable accessories, such as power generation, transmission, and distribution, as its main business. Geographically, it derives key revenue from Taiwan and the rest from the Americas and the Asia region.
89GF Score
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