ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Autotrader Group's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 45.10%.
As of today (2026-06-24), Autotrader Group's WACC % is 5.26%. Autotrader Group's ROC % is 47.54% (calculated using TTM income statement data).
Autotrader Group 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.
Autotrader Group (OTCPK:ATDRY) 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, Autotrader Group's WACC % is 5.26%. Autotrader Group's ROC % is 47.54% (calculated using TTM income statement data).
Autotrader Group 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.
Autotrader Group ROC % Related Terms
Autotrader Group ROC % Historical Data
* Premium members only.
The historical data trend for Autotrader Group'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 Operating Income data used here is two times the semi-annual (Mar. 2026) 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.
Autotrader Group (ATDRY) has a ROC % of 45.10% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Autotrader Group and its competitors.
Is Autotrader Group's ROC % too high?
Autotrader Group's current ROC % is 45.10%. The Interactive Media industry median ROC % is 1.88. Autotrader Group's value of 45.10% is 2298.9% above this industry median. Overall, Autotrader Group has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Autotrader Group's ROC % compare to GOOGL and META?
Autotrader Group's ROC % of 45.10% can be compared against companies in the Interactive Media industry. The industry median ROC % is 1.88. Autotrader Group's value of 45.10% is 2298.9% 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 Interactive Media company?
The median ROC % among Interactive Media companies is 1.88, based on 560 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. Autotrader Group's current ROC % of 45.10% is 2298.9% 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 Autotrader Group and its competitors. For the Interactive Media industry, the median ROC % is 1.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Autotrader Group's current ROC % is 45.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Autotrader Group stock overvalued right now?
Based on GuruFocus' analysis, Autotrader Group (ATDRY) is currently considered Significantly Undervalued. The stock's GF Value™ is $2.82, compared to a current price of $1.55 — trading 45% below its estimated fair value. The current ROC % is 45.10% and 2298.9% above the Interactive Media industry median of 1.88. Autotrader Group's overall GF Score™ is 79/100 with 2 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 Autotrader Group (ATDRY), the current ROC % is 45.10% as of Mar. 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 Autotrader Group (ATDRY) Overvalued in 2026?
Based on GuruFocus' analysis, Autotrader Group stock appears to be undervalued.
The current stock price of $1.55 is trading 45% below its estimated GF Value™ of $2.82.
GuruFocus considers Autotrader Group to be Significantly Undervalued.
Key valuation signals for ATDRY:
ROC %: 45.10%
GF Value™: $2.82 vs. price of $1.55 (45% below fair value)
Industry Position: 2298.9% above the Interactive Media median
No single metric tells the full story. See the ATDRY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Autotrader Group plc is the UK automotive marketplace and digital platform for the automotive industry. The company uses data science, artificial intelligence and technology to improve how vehicles are bought and sold and is digitising the car buying journey from search and discovery through to financing and purchase. Its segments are: Autotrader, generate maximum revenue, which includes the results of Autotrader and AutoConvert in respect of online classified advertising of motor vehicles and related products and services in the digital automotive marketplace, including share of profit from the Dealer Auction joint venture, and Autorama, which comprises the results of Autorama in respect of a marketplace for leasing new vehicles and related products and services. it operate in UK.
79GF Score
Get the complete analysis for ATDRY
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ATDRY has been successfully added to your 
