ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Bjorn Borg AB's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 24.60%.
As of today (2026-06-27), Bjorn Borg AB's WACC % is 9.96%. Bjorn Borg AB's ROC % is 15.54% (calculated using TTM income statement data).
Bjorn Borg AB 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.
Bjorn Borg AB (FRA:6BB) 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, Bjorn Borg AB's WACC % is 9.96%. Bjorn Borg AB's ROC % is 15.54% (calculated using TTM income statement data).
Bjorn Borg AB 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.
Bjorn Borg AB ROC % Related Terms
Bjorn Borg AB ROC % Historical Data
* Premium members only.
The historical data trend for Bjorn Borg AB'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.
Bjorn Borg AB (FRA:6BB) has a ROC % of 24.60% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Bjorn Borg AB and its competitors.
Is Bjorn Borg AB's ROC % too high?
Bjorn Borg AB's current ROC % is 24.60%. The Manufacturing - Apparel & Accessories industry median ROC % is 2.91. Bjorn Borg AB's value of 24.60% is 746.8% above this industry median. Overall, Bjorn Borg AB has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Bjorn Borg AB's ROC % compare to RL and LEVI?
Bjorn Borg AB's ROC % of 24.60% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROC % is 2.91. Bjorn Borg AB's value of 24.60% is 746.8% 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 Manufacturing - Apparel & Accessories company?
The median ROC % among Manufacturing - Apparel & Accessories companies is 2.91, based on 1,048 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. Bjorn Borg AB's current ROC % of 24.60% is 746.8% 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 Bjorn Borg AB and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bjorn Borg AB's current ROC % is 24.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bjorn Borg AB stock overvalued right now?
Based on GuruFocus' analysis, Bjorn Borg AB (FRA:6BB) is currently considered Fairly Valued. The stock's GF Value™ is €5.80, compared to a current price of €5.46 — trading 5.9% below its estimated fair value. The current ROC % is 24.60% and 746.8% above the Manufacturing - Apparel & Accessories industry median of 2.91. Bjorn Borg AB's overall GF Score™ is 90/100 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 Bjorn Borg AB (FRA:6BB), the current ROC % is 24.60% 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 Bjorn Borg AB (FRA:6BB) Overvalued in 2026?
Based on GuruFocus' analysis, Bjorn Borg AB stock appears to be undervalued.
The current stock price of €5.46 is trading 5.9% below its estimated GF Value™ of €5.80.
GuruFocus considers Bjorn Borg AB to be Fairly Valued.
Key valuation signals for FRA:6BB:
ROC %: 24.60%
GF Value™: €5.80 vs. price of €5.46 (5.9% below fair value)
Industry Position: 746.8% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the FRA:6BB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bjorn Borg AB is engaged in the apparel industry. It owns the Bjorn Borg brand, through which it offers fashion underwear, sportswear, fragrances, footwear, bags, luggage, eyewear, and home products. The company operates in the segments of Wholesale, Own stores, Distributors, Licensing, and e-commerce. A majority of the revenue is derived from the Wholesale segment which consists of revenue and expenses associated with the company's wholesale operations. The Group has wholesale operations in Sweden, Finland, the Netherlands, Belgium, Germany, and England for apparel and underwear as well as in Sweden, Finland, and the Baltic countries for footwear. Geographically, it derives a majority of revenue from Sweden.
90GF Score
Get the complete analysis for FRA:6BB
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
FRA:6BB has been successfully added to your 
