ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Waaree Energies's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 18.69%.
As of today (2026-07-08), Waaree Energies's WACC % is 12.83%. Waaree Energies's ROC % is 21.65% (calculated using TTM income statement data).
Waaree Energies 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.
Waaree Energies (BOM:544277) 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, Waaree Energies's WACC % is 12.83%. Waaree Energies's ROC % is 21.65% (calculated using TTM income statement data).
Waaree Energies 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.
Waaree Energies ROC % Related Terms
Waaree Energies ROC % Historical Data
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The historical data trend for Waaree Energies'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.
Waaree Energies (BOM:544277) has a ROC % of 18.69% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Waaree Energies and its competitors.
Is Waaree Energies' ROC % too high?
Waaree Energies' current ROC % is 18.69%. The Semiconductors industry median ROC % is 3.77. Waaree Energies' value of 18.69% is 395.8% above this industry median. Overall, Waaree Energies has a GF Score™ of 48/100, reflecting its overall financial health beyond just this single metric.
How does Waaree Energies' ROC % compare to FSLR and NXT?
Waaree Energies' ROC % of 18.69% can be compared against companies in the Semiconductors industry. The industry median ROC % is 3.77. Waaree Energies' value of 18.69% is 395.8% 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 Semiconductors company?
The median ROC % among Semiconductors companies is 3.77, based on 1,009 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. Waaree Energies's current ROC % of 18.69% is 395.8% 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 Waaree Energies and its competitors. For the Semiconductors industry, the median ROC % is 3.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Waaree Energies's current ROC % is 18.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Waaree Energies stock overvalued right now?
Waaree Energies (BOM:544277) has a current ROC % of 18.69%. The current ROC % is 18.69% and 395.8% above the Semiconductors industry median of 3.77. Waaree Energies' overall GF Score™ is 48/100 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 Waaree Energies (BOM:544277), the current ROC % is 18.69% 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.
Waaree Energies Ltd is a manufacturer of solar PV modules in India. Its solar PV modules are currently manufactured using multicrystalline cell technology, monocrystalline cell technology and emerging technologies such as Tunnel Oxide Passivated Contact (TopCon). Its portfolio of solar energy products consists of the following PV modules: multicrystalline modules, monocrystalline modules, and TopCon modules, comprising flexible modules, which includes bifacial modules (Mono PERC) (framed and unframed), and building integrated photo voltaic (BIPV) modules. The Company operates only in one Business Segment i.e. Manufacturing & Trading of Solar Photovoltaic Modules.
48GF Score
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