Capital SecuritiesTPE:6005 +1.86%75 WACC % is 2.63% as of Jul. 01, 2026, which is 20% below its 10-year median of 3.27. GuruFocus rates TPE:6005 with a GF Score™ of 75/100 and a GF Value™ of NT$31.86 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 831 Capital Markets companies, Capital Securities ranks better than 94.71% on this metric.
As of today (2026-07-01), Capital Securities's weighted average cost of capital is 2.63%%. Capital Securities's ROIC % is 3.02% (calculated using TTM income statement data).
Capital Securities 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.
Capital Securities (TPE:6005) 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, Capital Securities's weighted average cost of capital is 2.63%%. Capital Securities's ROIC % is 3.02% (calculated using TTM income statement data).
Capital Securities 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
Capital Securities WACC % Historical Data
* Premium members only.
The historical data trend for Capital Securities'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 Capital Markets subindustry, Capital Securities'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.
Capital Securities WACC % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Capital Securities's WACC % distribution charts can be found below:
* The bar in red indicates where Capital Securities'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, Capital Securities's market capitalization (E) is NT$83037.231 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, Capital Securities's latest one-year quarterly average Book Value of Debt (D) is NT$115087.641 Mil.
a) weight of equity = E / (E + D) = 83037.231 / (83037.231 + 115087.641) = 0.4191
b) weight of debt = D / (E + D) = 115087.641 / (83037.231 + 115087.641) = 0.5809
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 4.461%. 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. Capital Securities's beta is -0.1354.
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 = 4.461% + -0.1354 * 6% = 3.6486%
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, Capital Securities's interest expense (positive number) was NT$2553.884 Mil. Its total Book Value of Debt (D) is NT$115087.641 Mil.
Cost of Debt = 2553.884 / 115087.641 = 2.2191%.
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 = 1091.244 / 7417.367 = 14.71%.
Capital Securities'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)
=
0.4191
*
3.6486%
+
0.5809
*
2.2191%
*
(1 - 14.71%)
=
2.63%
* 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.
Capital Securities (TPE:6005) has a WACC % of 2.63% 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 Capital Securities and its competitors. This is 20% below median its historical median of 3.27. Over the past decade, Capital Securities' WACC % has ranged from 2.59 to 4.80. According to the industry distribution chart, Capital Securities ranks #44 out of 831 companies in the Capital Markets industry, placing it in the top 5.3%.
Is Capital Securities' WACC % too high?
Capital Securities' current WACC % of 2.63% is 20% below median its 10-year median of 3.27. Over the past 10 years, this metric has ranged from a low of 2.59 to a high of 4.80. The Capital Markets industry median WACC % is 9.20. Capital Securities' value of 2.63% is 71.4% below this industry median. Based on the distribution chart, Capital Securities ranks #44 out of 831 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Capital Securities has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Capital Securities' WACC % compare to MS and GS?
According to the Capital Markets industry distribution chart, Capital Securities ranks #44 out of 831 companies for WACC %. This places Capital Securities in the top 5% of its industry — outperforming the majority of peers. The industry median WACC % is 9.20. Capital Securities' value of 2.63% is 71.4% below this benchmark. Historically, Capital Securities' own WACC % has ranged from 2.59 to 4.80 over the past decade. While the company's 10-year median is 3.27 vs. the industry median of 9.20, Capital Securities 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 Capital Markets company?
The median WACC % among Capital Markets companies is 9.20, based on 831 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. Capital Securities's current WACC % of 2.63% is 71.4% 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 Capital Securities and its competitors. For the Capital Markets industry, the median WACC % is 9.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital Securities's current WACC % is 2.63%, which is 20% below median its own 10-year median of 3.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capital Securities stock overvalued right now?
Based on GuruFocus' analysis, Capital Securities (TPE:6005) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$31.86, compared to a current price of NT$38.25 — trading 20.1% above its estimated fair value. The current WACC % is 2.63%, which is 20% below median its 10-year median of 3.27 and 71.4% below the Capital Markets industry median of 9.20. Capital Securities' overall GF Score™ is 75/100 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 Capital Securities (TPE:6005), the current WACC % is 2.63% 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 Capital Securities (TPE:6005) Overvalued in 2026?
Based on GuruFocus' analysis, Capital Securities stock appears to be overvalued.
The current stock price of NT$38.25 is trading 20.1% above its estimated GF Value™ of NT$31.86.
GuruFocus considers Capital Securities to be Modestly Overvalued.
Key valuation signals for TPE:6005:
WACC %: 2.63% (20% below median its 10-year median of 3.27)
GF Value™: NT$31.86 vs. price of NT$38.25 (20.1% above fair value)
Industry Position: 71.4% below the Capital Markets median (#44 of 831)
No single metric tells the full story. See the TPE:6005 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capital Securities Corp is a Taiwan-based securities company engaged in brokerage, underwriting, proprietary trading, and derivatives businesses. It operates in segments such as the Brokerage segment, which is engaged in brokerage trading, margin trading, and securities lending business. Corporate financing segment: Engaged in providing advisory on initial public offering or to register on the emerging or listed market, securities underwriting and sales, corporate finance, mergers and acquisitions. Dealing segment: Engaged in trading securities and related listed stock instruments on a proprietary basis. Derivative instrument segment: Engaged in the investment, consultancy, and issuance of derivative instruments. Futures: Engaged in the business of domestic futures brokerage services.
75GF Score
Get the complete analysis for TPE:6005
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:6005 has been successfully added to your 
