ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. ZF Commercial Vehicle Control Systems India's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 27.20%.
As of today (2026-07-03), ZF Commercial Vehicle Control Systems India's WACC % is 9.77%. ZF Commercial Vehicle Control Systems India's ROC % is 22.03% (calculated using TTM income statement data).
ZF Commercial Vehicle Control Systems India 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.
ZF Commercial Vehicle Control Systems India (BOM:533023) 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, ZF Commercial Vehicle Control Systems India's WACC % is 9.77%. ZF Commercial Vehicle Control Systems India's ROC % is 22.03% (calculated using TTM income statement data).
ZF Commercial Vehicle Control Systems India 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.
ZF Commercial Vehicle Control Systems India ROC % Related Terms
ZF Commercial Vehicle Control Systems India ROC % Historical Data
* 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.
ZF Commercial Vehicle Control Systems India ROC % Chart
ZF Commercial Vehicle Control Systems India Annual Data
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.
ZF Commercial Vehicle Control Systems India (BOM:533023) has a ROC % of 27.20% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on ZF Commercial Vehicle Control Systems India and its competitors.
Is ZF Commercial Vehicle Control Systems India's ROC % too high?
ZF Commercial Vehicle Control Systems India's current ROC % is 27.20%. The Vehicles & Parts industry median ROC % is 5.07. ZF Commercial Vehicle Control Systems India's value of 27.20% is 436.5% above this industry median. Overall, ZF Commercial Vehicle Control Systems India has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ZF Commercial Vehicle Control Systems India's ROC % compare to ORLY and AZO?
ZF Commercial Vehicle Control Systems India's ROC % of 27.20% can be compared against companies in the Vehicles & Parts industry. The industry median ROC % is 5.07. ZF Commercial Vehicle Control Systems India's value of 27.20% is 436.5% 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 Vehicles & Parts company?
The median ROC % among Vehicles & Parts companies is 5.07, based on 1,314 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. ZF Commercial Vehicle Control Systems India's current ROC % of 27.20% is 436.5% 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 ZF Commercial Vehicle Control Systems India and its competitors. For the Vehicles & Parts industry, the median ROC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZF Commercial Vehicle Control Systems India's current ROC % is 27.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZF Commercial Vehicle Control Systems India stock overvalued right now?
Based on GuruFocus' analysis, ZF Commercial Vehicle Control Systems India (BOM:533023) is currently considered Fairly Valued. The stock's GF Value™ is ₹2,578.49, compared to a current price of ₹2,431.40 — trading 5.7% below its estimated fair value. The current ROC % is 27.20% and 436.5% above the Vehicles & Parts industry median of 5.07. ZF Commercial Vehicle Control Systems India's overall GF Score™ is 94/100 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 ZF Commercial Vehicle Control Systems India (BOM:533023), the current ROC % is 27.20% 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 ZF Commercial Vehicle Control Systems India (BOM:533023) Overvalued in 2026?
Based on GuruFocus' analysis, ZF Commercial Vehicle Control Systems India stock appears to be undervalued.
The current stock price of ₹2,431.40 is trading 5.7% below its estimated GF Value™ of ₹2,578.49.
GuruFocus considers ZF Commercial Vehicle Control Systems India to be Fairly Valued.
Key valuation signals for BOM:533023:
ROC %: 27.20%
GF Value™: ₹2,578.49 vs. price of ₹2,431.40 (5.7% below fair value)
Industry Position: 436.5% above the Vehicles & Parts median
No single metric tells the full story. See the BOM:533023 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ZF Commercial Vehicle Control Systems India Business Description
ZF Commercial Vehicle Control Systems India Ltd is a supplier of technologies and services that improve commercial vehicle safety, efficiency, and connectivity. It offers conventional braking products, braking systems, and other related air-assisted products and systems, such as air suspension and driveline controls. Its operates in the automotive segment.
94GF Score
Get the complete analysis for BOM:533023
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:533023 has been successfully added to your 
