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 Erawan Group PCL's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.75%.
As of today (2026-07-01), The Erawan Group PCL's WACC % is 7.92%. The Erawan Group PCL's ROC % is 5.52% (calculated using TTM income statement data).
The Erawan Group PCL earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The Erawan Group PCL (BKK:ERW) 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, The Erawan Group PCL's WACC % is 7.92%. The Erawan Group PCL's ROC % is 5.52% (calculated using TTM income statement data).
The Erawan Group PCL earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
* 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 four times the quarterly (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.
The Erawan Group PCL (BKK:ERW) has a ROC % of 7.75% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on The Erawan Group PCL and its competitors.
Is The Erawan Group PCL's ROC % too high?
The Erawan Group PCL's current ROC % is 7.75%. The Travel & Leisure industry median ROC % is 3.77. The Erawan Group PCL's value of 7.75% is 105.8% above this industry median. Overall, The Erawan Group PCL has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Erawan Group PCL's ROC % compare to MAR and HLT?
The Erawan Group PCL's ROC % of 7.75% can be compared against companies in the Travel & Leisure industry. The industry median ROC % is 3.77. The Erawan Group PCL's value of 7.75% is 105.8% 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 a Travel & Leisure company?
The median ROC % among Travel & Leisure companies is 3.77, based on 834 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. The Erawan Group PCL's current ROC % of 7.75% is 105.8% 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 The Erawan Group PCL and its competitors. For the Travel & Leisure industry, the median ROC % is 3.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Erawan Group PCL's current ROC % is 7.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Erawan Group PCL stock overvalued right now?
Based on GuruFocus' analysis, The Erawan Group PCL (BKK:ERW) is currently considered Modestly Undervalued. The stock's GF Value™ is ฿4.03, compared to a current price of ฿3.08 — trading 23.6% below its estimated fair value. The current ROC % is 7.75% and 105.8% above the Travel & Leisure industry median of 3.77. The Erawan Group PCL's overall GF Score™ is 84/100 with 11 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 The Erawan Group PCL (BKK:ERW), the current ROC % is 7.75% 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 The Erawan Group PCL (BKK:ERW) Overvalued in 2026?
Based on GuruFocus' analysis, The Erawan Group PCL stock appears to be undervalued.
The current stock price of ฿3.08 is trading 23.6% below its estimated GF Value™ of ฿4.03.
GuruFocus considers The Erawan Group PCL to be Modestly Undervalued.
Key valuation signals for BKK:ERW:
ROC %: 7.75%
GF Value™: ฿4.03 vs. price of ฿3.08 (23.6% below fair value)
Industry Position: 105.8% above the Travel & Leisure median
No single metric tells the full story. See the BKK:ERW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Erawan Group PCL is a company that focuses on investing in various companies, engaged in the hotel business and in building rental business. The company operates two business segments: Hotel business segment, which consists of Grand Hyatt Erawan Bangkok, JW Marriott Bangkok, The Naka Island, a Luxury Collection Resort and Spa, Phuket, Renaissance Koh Samui Resort and Spa, Courtyard by Marriott Bangkok, Holiday Inn Pattaya, Mercure Bangkok Siam and Ibis Hotels; and the Rental and management building business segment including Erawan Bangkok, which is a boutique mall to the center of Bangkok's business and commercial district and Ploenchit Center, which is an office building with retail shops and international restaurants. The majority of the revenue is generated from its Hotel business.
84GF Score
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