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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Universal Arts's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was -35.06%.
As of today (2026-08-29), Universal Arts's WACC % is 14.91%. Universal Arts's ROC % is -23.78% (calculated using TTM income statement data).
Universal Arts earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Universal Arts's WACC % is 14.91%. Universal Arts's ROC % is -23.78% (calculated using TTM income statement data).
Universal Arts 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.
Universal Arts ROC % Related Terms
Universal Arts ROC % Historical Data
* Premium members only.
The historical data trend for Universal Arts'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 (Jun. 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.
Universal Arts (BOM:532378) has a ROC % of -35.06% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Universal Arts and its competitors.
Is Universal Arts' ROC % too high?
Universal Arts' current ROC % is -35.06%. Overall, Universal Arts has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Universal Arts' ROC % compare to NFLX and DIS?
Universal Arts' ROC % of -35.06% can be compared against companies in the Media - Diversified industry. The industry median ROC % is 1.68. 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 Media - Diversified company?
The median ROC % among Media - Diversified companies is 1.68, based on 1,004 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. 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 Universal Arts and its competitors. For the Media - Diversified industry, the median ROC % is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Arts's current ROC % is -35.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Arts stock overvalued right now?
Based on GuruFocus' analysis, Universal Arts (BOM:532378) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹0.91, compared to a current price of ₹5.80 — trading 537.4% above its estimated fair value. The current ROC % is -35.06%. Universal Arts' overall GF Score™ is 38/100 with 7 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 Universal Arts (BOM:532378), the current ROC % is -35.06% as of Jun. 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 Universal Arts (BOM:532378) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Arts stock appears to be overvalued.
The current stock price of ₹5.80 is trading 537.4% above its estimated GF Value™ of ₹0.91.
GuruFocus considers Universal Arts to be Significantly Overvalued.
Key valuation signals for BOM:532378:
ROC %: -35.06%
GF Value™: ₹0.91 vs. price of ₹5.80 (537.4% above fair value)
No single metric tells the full story. See the BOM:532378 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Arts Ltd is engaged in the business of media such as TV serials, feature film production, trading in film rights, and television software, etc. It has its EDIT V6 real-time non-linear editing systems, which are used by the company for editing serials of other production houses as well as its own. The company mainly focuses on acquiring negative rights (i.e., absolute rights) of films, and offering them to Doordarshan for a one-time single telecast, and the overseas rights are sold country-wise to various buyers.
38GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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