ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Apollo Hospitals Enterprise's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 12.31%.
As of today (2026-07-03), Apollo Hospitals Enterprise's WACC % is 11.10%. Apollo Hospitals Enterprise's ROC % is 12.49% (calculated using TTM income statement data).
Apollo Hospitals Enterprise 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.
Apollo Hospitals Enterprise (BOM:508869) 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, Apollo Hospitals Enterprise's WACC % is 11.10%. Apollo Hospitals Enterprise's ROC % is 12.49% (calculated using TTM income statement data).
Apollo Hospitals Enterprise 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.
* 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.
Apollo Hospitals Enterprise (BOM:508869) has a ROC % of 12.31% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Apollo Hospitals Enterprise and its competitors.
Is Apollo Hospitals Enterprise's ROC % too high?
Apollo Hospitals Enterprise's current ROC % is 12.31%. The Healthcare Providers & Services industry median ROC % is 3.08. Apollo Hospitals Enterprise's value of 12.31% is 300.3% above this industry median. Overall, Apollo Hospitals Enterprise has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Apollo Hospitals Enterprise's ROC % compare to HCA and THC?
Apollo Hospitals Enterprise's ROC % of 12.31% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROC % is 3.08. Apollo Hospitals Enterprise's value of 12.31% is 300.3% 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 Healthcare Providers & Services company?
The median ROC % among Healthcare Providers & Services companies is 3.08, based on 670 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. Apollo Hospitals Enterprise's current ROC % of 12.31% is 300.3% 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 Apollo Hospitals Enterprise and its competitors. For the Healthcare Providers & Services industry, the median ROC % is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Apollo Hospitals Enterprise's current ROC % is 12.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Apollo Hospitals Enterprise stock overvalued right now?
Based on GuruFocus' analysis, Apollo Hospitals Enterprise (BOM:508869) is currently considered Fairly Valued. The stock's GF Value™ is ₹8,723.27, compared to a current price of ₹8,697.55 — trading 0.3% below its estimated fair value. The current ROC % is 12.31% and 300.3% above the Healthcare Providers & Services industry median of 3.08. Apollo Hospitals Enterprise's overall GF Score™ is 92/100 with 4 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 Apollo Hospitals Enterprise (BOM:508869), the current ROC % is 12.31% 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 Apollo Hospitals Enterprise (BOM:508869) Overvalued in 2026?
Based on GuruFocus' analysis, Apollo Hospitals Enterprise stock appears to be undervalued.
The current stock price of ₹8,697.55 is trading 0.3% below its estimated GF Value™ of ₹8,723.27.
GuruFocus considers Apollo Hospitals Enterprise to be Fairly Valued.
Key valuation signals for BOM:508869:
ROC %: 12.31%
GF Value™: ₹8,723.27 vs. price of ₹8,697.55 (0.3% below fair value)
Industry Position: 300.3% above the Healthcare Providers & Services median
No single metric tells the full story. See the BOM:508869 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Apollo Hospitals Enterprise Ltd operates a network of private hospitals in India through primary, secondary, and tertiary care facilities. The firm's tertiary care hospitals provide complex care in a variety of specialties that include cardiology, oncology, neuroscience, orthopedics, radiology, and gastroenterology. Apollo Hospitals also operates primary care and diagnostics clinics as well as telemedicine units and offers consulting, health insurance, education and training, and research services. Its reportable operating segments are; Healthcare Services (represents hospitals and hospitals services); Retail Health and Diagnostics (includes clinics and diagnostics); Digital Health and Pharmacy Distribution; and Others. Maximum revenue is generated from its Healthcare Services segment.
92GF Score
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