ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Etoro Group's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 193.97%.
As of today (2026-06-28), Etoro Group's WACC % is 10.93%. Etoro Group's ROC % is 127.77% (calculated using TTM income statement data).
Etoro Group 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.
Etoro Group (NAS:ETOR) 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, Etoro Group's WACC % is 10.93%. Etoro Group's ROC % is 127.77% (calculated using TTM income statement data).
Etoro Group 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.
Etoro Group ROC % Related Terms
Etoro Group ROC % Historical Data
* Premium members only.
The historical data trend for Etoro Group'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.
Etoro Group (ETOR) has a ROC % of 193.97% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Etoro Group and its competitors.
Is Etoro Group's ROC % too high?
Etoro Group's current ROC % is 193.97%. The Capital Markets industry median ROC % is 1.27. Etoro Group's value of 193.97% is 15173.2% above this industry median. Overall, Etoro Group has a GF Score™ of 44/100, reflecting its overall financial health beyond just this single metric.
How does Etoro Group's ROC % compare to MRX and PJT?
Etoro Group's ROC % of 193.97% can be compared against companies in the Capital Markets industry. The industry median ROC % is 1.27. Etoro Group's value of 193.97% is 15173.2% 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 Capital Markets company?
The median ROC % among Capital Markets companies is 1.27, based on 698 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. Etoro Group's current ROC % of 193.97% is 15173.2% 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 Etoro Group and its competitors. For the Capital Markets industry, the median ROC % is 1.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Etoro Group's current ROC % is 193.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Etoro Group stock overvalued right now?
Etoro Group (ETOR) has a current ROC % of 193.97%. The current ROC % is 193.97% and 15173.2% above the Capital Markets industry median of 1.27. Etoro Group's overall GF Score™ is 44/100 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 Etoro Group (ETOR), the current ROC % is 193.97% 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.
Etoro Group Ltd is a multi-asset platform supporting trading and investing in equities, cryptoassets, commodities, currencies, and options traded either as an asset or as a derivative related to different underlying asset types. The Group is engaged in one operating segment of trading activity.
44GF Score
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