ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Medibank Pvt's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 15.80%.
As of today (2026-06-25), Medibank Pvt's WACC % is 6.83%. Medibank Pvt's ROC % is 12.37% (calculated using TTM income statement data).
Medibank Pvt 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.
Medibank Pvt (ASX:MPL) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment 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, Medibank Pvt's WACC % is 6.83%. Medibank Pvt's ROC % is 12.37% (calculated using TTM income statement data).
Medibank Pvt 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
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Medibank Pvt ROC % Related Terms
Medibank Pvt ROC % Historical Data
* Premium members only.
The historical data trend for Medibank Pvt's ROC % 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.
Note:
The EBIT data used here is two times the semi-annual (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* 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.
Medibank Pvt (ASX:MPL) has a ROC % of 15.80% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Medibank Pvt and its competitors.
Is Medibank Pvt's ROC % too high?
Medibank Pvt's current ROC % is 15.80%. The Insurance industry median ROC % is 3.36. Medibank Pvt's value of 15.80% is 370.2% above this industry median. Overall, Medibank Pvt has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Medibank Pvt's ROC % compare to FNF and AXS?
Medibank Pvt's ROC % of 15.80% can be compared against companies in the Insurance industry. The industry median ROC % is 3.36. Medibank Pvt's value of 15.80% is 370.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Insurance company?
The median ROC % among Insurance companies is 3.36, based on 368 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Medibank Pvt's current ROC % of 15.80% is 370.2% above 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Medibank Pvt and its competitors. For the Insurance industry, the median ROC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Medibank Pvt's current ROC % is 15.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Medibank Pvt stock overvalued right now?
Based on GuruFocus' analysis, Medibank Pvt (ASX:MPL) is currently considered Modestly Overvalued. The stock's GF Value™ is A$4.38, compared to a current price of A$4.99 — trading 13.9% above its estimated fair value. The current ROC % is 15.80% and 370.2% above the Insurance industry median of 3.36. Medibank Pvt's overall GF Score™ is 77/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Medibank Pvt (ASX:MPL), the current ROC % is 15.80% as of Dec. 2025. 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 Medibank Pvt (ASX:MPL) Overvalued in 2026?
Based on GuruFocus' analysis, Medibank Pvt stock appears to be overvalued.
The current stock price of A$4.99 is trading 13.9% above its estimated GF Value™ of A$4.38.
GuruFocus considers Medibank Pvt to be Modestly Overvalued.
Key valuation signals for ASX:MPL:
ROC %: 15.80%
GF Value™: A$4.38 vs. price of A$4.99 (13.9% above fair value)
Industry Position: 370.2% above the Insurance median
No single metric tells the full story. See the ASX:MPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Previously owned by the Australian government, Medibank is the largest health insurer in Australia. Its two brands, Medibank Private and Ahm, cover around 5 million people. Medibank and Australia's fourth-largest health fund, NIB Holdings, are the only listed health insurers. In addition to private health insurance, the firm provides life, pet, and travel insurance, as well as health insurance for overseas students and temporary overseas workers. The Medibank Health division provides healthcare services to businesses, governments, and communities across Australia and New Zealand.
77GF Score
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