As of today (2026-07-01), Taiwan Hon Chuan Enterprise Co's weighted average cost of capital is 3.81%%. Taiwan Hon Chuan Enterprise Co's ROIC % is 7.51% (calculated using TTM income statement data).
Taiwan Hon Chuan Enterprise 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.
Taiwan Hon Chuan Enterprise Co (TPE:9939) 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, Taiwan Hon Chuan Enterprise Co's weighted average cost of capital is 3.81%%. Taiwan Hon Chuan Enterprise Co's ROIC % is 7.51% (calculated using TTM income statement data).
Taiwan Hon Chuan Enterprise 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
Taiwan Hon Chuan Enterprise 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 Packaging & Containers subindustry, Taiwan Hon Chuan Enterprise 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.
Taiwan Hon Chuan Enterprise Co WACC % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Taiwan Hon Chuan Enterprise Co's WACC % distribution charts can be found below:
* The bar in red indicates where Taiwan Hon Chuan Enterprise 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, Taiwan Hon Chuan Enterprise Co's market capitalization (E) is NT$38008.562 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, Taiwan Hon Chuan Enterprise Co's latest one-year quarterly average Book Value of Debt (D) is NT$21030.0324 Mil.
a) weight of equity = E / (E + D) = 38008.562 / (38008.562 + 21030.0324) = 0.6438
b) weight of debt = D / (E + D) = 21030.0324 / (38008.562 + 21030.0324) = 0.3562
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 4.477%. 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. Taiwan Hon Chuan Enterprise Co's beta is 0.1101.
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 = 4.477% + 0.1101 * 6% = 5.1376%
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, Taiwan Hon Chuan Enterprise Co's interest expense (positive number) was NT$377.1 Mil. Its total Book Value of Debt (D) is NT$21030.0324 Mil.
Cost of Debt = 377.1 / 21030.0324 = 1.7931%.
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 = 732.716 / 3549.972 = 20.64%.
* 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.
Taiwan Hon Chuan Enterprise Co (TPE:9939) has a WACC % of 3.81% 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 Taiwan Hon Chuan Enterprise Co and its competitors. This is near median its historical median of 3.90. Over the past decade, Taiwan Hon Chuan Enterprise Co's WACC % has ranged from 2.80 to 6.93. According to the industry distribution chart, Taiwan Hon Chuan Enterprise Co ranks #69 out of 410 companies in the Packaging & Containers industry, placing it in the top 16.8%.
Is Taiwan Hon Chuan Enterprise Co's WACC % too high?
Taiwan Hon Chuan Enterprise Co's current WACC % of 3.81% is near median its 10-year median of 3.90. Over the past 10 years, this metric has ranged from a low of 2.80 to a high of 6.93. The Packaging & Containers industry median WACC % is 7.41. Taiwan Hon Chuan Enterprise Co's value of 3.81% is 48.5% below this industry median. Based on the distribution chart, Taiwan Hon Chuan Enterprise Co ranks #69 out of 410 companies in the Packaging & Containers industry, which is in the top quartile — a strong position relative to peers. Overall, Taiwan Hon Chuan Enterprise Co has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Hon Chuan Enterprise Co's WACC % compare to SW and PKG?
According to the Packaging & Containers industry distribution chart, Taiwan Hon Chuan Enterprise Co ranks #69 out of 410 companies for WACC %. This places Taiwan Hon Chuan Enterprise Co in the top 17% of its industry — outperforming the majority of peers. The industry median WACC % is 7.41. Taiwan Hon Chuan Enterprise Co's value of 3.81% is 48.5% below this benchmark. Historically, Taiwan Hon Chuan Enterprise Co's own WACC % has ranged from 2.80 to 6.93 over the past decade. While the company's 10-year median is 3.90 vs. the industry median of 7.41, Taiwan Hon Chuan Enterprise 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 Packaging & Containers company?
The median WACC % among Packaging & Containers companies is 7.41, based on 410 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. Taiwan Hon Chuan Enterprise Co's current WACC % of 3.81% is 48.5% 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 Taiwan Hon Chuan Enterprise Co and its competitors. For the Packaging & Containers industry, the median WACC % is 7.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Hon Chuan Enterprise Co's current WACC % is 3.81%, which is near median its own 10-year median of 3.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Hon Chuan Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Hon Chuan Enterprise Co (TPE:9939) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$147.23, compared to a current price of NT$127.50 — trading 13.4% below its estimated fair value. The current WACC % is 3.81%, which is near median its 10-year median of 3.90 and 48.5% below the Packaging & Containers industry median of 7.41. Taiwan Hon Chuan Enterprise Co's overall GF Score™ is 88/100 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 Taiwan Hon Chuan Enterprise Co (TPE:9939), the current WACC % is 3.81% 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 Taiwan Hon Chuan Enterprise Co (TPE:9939) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Hon Chuan Enterprise Co stock appears to be undervalued.
The current stock price of NT$127.50 is trading 13.4% below its estimated GF Value™ of NT$147.23.
GuruFocus considers Taiwan Hon Chuan Enterprise Co to be Modestly Undervalued.
Key valuation signals for TPE:9939:
WACC %: 3.81% (near median its 10-year median of 3.90)
GF Value™: NT$147.23 vs. price of NT$127.50 (13.4% below fair value)
Industry Position: 48.5% below the Packaging & Containers median (#69 of 410)
No single metric tells the full story. See the TPE:9939 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Hon Chuan Enterprise Co Business Description
Taiwan Hon Chuan Enterprise Co Ltd manufactures and sells a variety of packaging products. Its primary product categories include plastic and aluminum caps used for beverages and can liners, polyethylene terephthalate bottles used to produce water bottles, and labels for consumer products. The Group also sells tobacco and liquor packaging, as well as cigarette filters and paper. In addition, Taiwan Hon Chuan sells packaging equipment used to produce caps, bottles, labels, and fill bottles. Its reportable segments are: Foreign Subsidiaries, which generate the maximum revenue, and Domestic. Geographically, the Group generates maximum revenue from its customers in Taiwan, followed by China, Southeast Asia, and other regions.
88GF Score
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