ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Definitive Healthcare's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -3.89%.
As of today (2026-06-25), Definitive Healthcare's WACC % is 10.20%. Definitive Healthcare's ROC % is -3.15% (calculated using TTM income statement data).
Definitive Healthcare earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Definitive Healthcare (NAS:DH) 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, Definitive Healthcare's WACC % is 10.20%. Definitive Healthcare's ROC % is -3.15% (calculated using TTM income statement data).
Definitive Healthcare 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.
* 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.
Definitive Healthcare (DH) has a ROC % of -3.89% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Definitive Healthcare and its competitors.
Is Definitive Healthcare's ROC % too high?
Definitive Healthcare's current ROC % is -3.89%. Overall, Definitive Healthcare has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Definitive Healthcare's ROC % compare to OPRX and CCLD?
Definitive Healthcare's ROC % of -3.89% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROC % is 3.06. 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 Healthcare Providers & Services company?
The median ROC % among Healthcare Providers & Services companies is 3.06, based on 671 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 Definitive Healthcare and its competitors. For the Healthcare Providers & Services industry, the median ROC % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Definitive Healthcare's current ROC % is -3.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Definitive Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Definitive Healthcare (DH) is currently considered Possible Value Trap. The stock's GF Value™ is $4.45, compared to a current price of $0.76 — trading 82.9% below its estimated fair value. The current ROC % is -3.89%. Definitive Healthcare's overall GF Score™ is 51/100 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 Definitive Healthcare (DH), the current ROC % is -3.89% 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 Definitive Healthcare (DH) Overvalued in 2026?
Based on GuruFocus' analysis, Definitive Healthcare stock appears to be undervalued.
The current stock price of $0.76 is trading 82.9% below its estimated GF Value™ of $4.45.
GuruFocus considers Definitive Healthcare to be Possible Value Trap.
Key valuation signals for DH:
ROC %: -3.89%
GF Value™: $4.45 vs. price of $0.76 (82.9% below fair value)
No single metric tells the full story. See the DH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Definitive Healthcare Corp is a provider of healthcare commercial intelligence. Its SaaS-based healthcare commercial intelligence platform is designed to provide comprehensive and accurate information on the healthcare ecosystem in the U.S. The platform uses deep analytics and data science to help customers develop data-driven strategic decisions, such as finding new markets to enter, building comprehensive go-to-market strategies, accessing tactical information to help target the right decision makers, and improving win rates with detailed contextual information. The company derives substantially all of its revenue from the sale of subscription fees for access to its platform and stand-ready support. Geographically, it derives a majority of its revenue from the United States.
51GF Score
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