ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Espire Hospitality's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.93%.
As of today (2026-06-26), Espire Hospitality's WACC % is 8.52%. Espire Hospitality's ROC % is 5.85% (calculated using TTM income statement data).
Espire Hospitality earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Espire Hospitality (BOM:532016) 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, Espire Hospitality's WACC % is 8.52%. Espire Hospitality's ROC % is 5.85% (calculated using TTM income statement data).
Espire Hospitality 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.
Espire Hospitality ROC % Related Terms
Espire Hospitality ROC % Historical Data
* Premium members only.
The historical data trend for Espire Hospitality'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 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.
Espire Hospitality (BOM:532016) has a ROC % of 2.93% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Espire Hospitality and its competitors.
Is Espire Hospitality's ROC % too high?
Espire Hospitality's current ROC % is 2.93%. The Travel & Leisure industry median ROC % is 3.76. Espire Hospitality's value of 2.93% is 22.1% below this industry median. Overall, Espire Hospitality has a GF Score™ of 47/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Espire Hospitality's ROC % compare to LVS and MGM?
Espire Hospitality's ROC % of 2.93% can be compared against companies in the Travel & Leisure industry. The industry median ROC % is 3.76. Espire Hospitality's value of 2.93% is 22.1% below 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 3.76, 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. Espire Hospitality's current ROC % of 2.93% is 22.1% 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 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 Espire Hospitality and its competitors. For the Travel & Leisure industry, the median ROC % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Espire Hospitality's current ROC % is 2.93%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Espire Hospitality stock overvalued right now?
Based on GuruFocus' analysis, Espire Hospitality (BOM:532016) is currently considered Possible Value Trap. The stock's GF Value™ is ₹481.70, compared to a current price of ₹170.55 — trading 64.6% below its estimated fair value. The current ROC % is 2.93% and 22.1% below the Travel & Leisure industry median of 3.76. Espire Hospitality's overall GF Score™ is 47/100 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 Espire Hospitality (BOM:532016), the current ROC % is 2.93% 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 Espire Hospitality (BOM:532016) Overvalued in 2026?
Based on GuruFocus' analysis, Espire Hospitality stock appears to be undervalued.
The current stock price of ₹170.55 is trading 64.6% below its estimated GF Value™ of ₹481.70.
GuruFocus considers Espire Hospitality to be Possible Value Trap.
Key valuation signals for BOM:532016:
ROC %: 2.93%
GF Value™: ₹481.70 vs. price of ₹170.55 (64.6% below fair value)
Industry Position: 22.1% below the Travel & Leisure median
No single metric tells the full story. See the BOM:532016 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Espire Hospitality Ltd is a company that engages in the Hotel Sector and real estate development activities. The company is engaged in the business of hospitality that includes operating, managing, developing, renovating, and promoting hotels and resorts and other related services. The company deals in the Hotel and Resorts segment. The hotels operated by the company include Country Inn Nature Resorts (Bhimtal), Country Inn Tarika (Jim Corbett), Country Inn Tarika Varca Beach (Goa), Country Inn Express (Sajjangarh), Zana - Luxury Escapes (Udaipur), Country Inn Hall of Heritage (Amritsar), and others. The company derives maximum revenue from Room Rent & Room Package Sale services.
47GF Score
Get the complete analysis for BOM:532016
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
BOM:532016 has been successfully added to your 
