ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Zug Estates Holding AG's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 2.36%.
As of today (2026-06-29), Zug Estates Holding AG's WACC % is 1.51%. Zug Estates Holding AG's ROC % is 2.41% (calculated using TTM income statement data).
Zug Estates Holding AG 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.
Zug Estates Holding AG (CHIX:ZUGNz) 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, Zug Estates Holding AG's WACC % is 1.51%. Zug Estates Holding AG's ROC % is 2.41% (calculated using TTM income statement data).
Zug Estates Holding AG 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 two times the semi-annual (Dec. 2025) 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.
Zug Estates Holding AG (CHIX:ZUGNZ) has a ROC % of 2.36% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Zug Estates Holding AG and its competitors.
Is Zug Estates Holding AG's ROC % too high?
Zug Estates Holding AG's current ROC % is 2.36%. The Real Estate industry median ROC % is 2.19. Zug Estates Holding AG's value of 2.36% is 7.8% above this industry median. Overall, Zug Estates Holding AG has a GF Score™ of 25/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zug Estates Holding AG's ROC % compare to competitors?
Zug Estates Holding AG's ROC % of 2.36% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.19. Zug Estates Holding AG's value of 2.36% is 7.8% 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 Real Estate company?
The median ROC % among Real Estate companies is 2.19, based on 1,760 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. Zug Estates Holding AG's current ROC % of 2.36% is 7.8% 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 Zug Estates Holding AG and its competitors. For the Real Estate industry, the median ROC % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zug Estates Holding AG's current ROC % is 2.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zug Estates Holding AG stock overvalued right now?
Based on GuruFocus' analysis, Zug Estates Holding AG (CHIX:ZUGNZ) is currently considered Fairly Valued. The stock's GF Value™ is CHF1,998.64, compared to a current price of CHF2,090.00 — trading 4.6% above its estimated fair value. The current ROC % is 2.36% and 7.8% above the Real Estate industry median of 2.19. Zug Estates Holding AG's overall GF Score™ is 25/100 with 3 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 Zug Estates Holding AG (CHIX:ZUGNZ), the current ROC % is 2.36% as of Dec. 2025. 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 Zug Estates Holding AG (CHIX:ZUGNZ) Overvalued in 2026?
Based on GuruFocus' analysis, Zug Estates Holding AG stock appears to be overvalued.
The current stock price of CHF2,090.00 is trading 4.6% above its estimated GF Value™ of CHF1,998.64.
GuruFocus considers Zug Estates Holding AG to be Fairly Valued.
Key valuation signals for CHIX:ZUGNZ:
ROC %: 2.36%
GF Value™: CHF1,998.64 vs. price of CHF2,090.00 (4.6% above fair value)
Industry Position: 7.8% above the Real Estate median
No single metric tells the full story. See the CHIX:ZUGNZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zug Estates Holding AG develops, markets and manages properties in the Zug region. The business activities are functioned through Real Estate and hotel and catering segments. It generates maximum revenue from the Real Estate segment. The real estate segment operates primarily in the areas of product development and management. The project development department develops and oversees its own construction projects, mainly for the Group portfolio. Its management department provides property management services for third parties and the Group portfolio.
25GF Score
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