ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Air Lease's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 2.25%.
As of today (2026-06-24), Air Lease's WACC % is 2.95%. Air Lease's ROC % is 1.64% (calculated using TTM income statement data).
Air Lease earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Air Lease (FRA:AVLA) 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, Air Lease's WACC % is 2.95%. Air Lease's ROC % is 1.64% (calculated using TTM income statement data).
Air Lease 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.
Air Lease ROC % Related Terms
Air Lease ROC % Historical Data
* Premium members only.
The historical data trend for Air Lease'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 (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.
Air Lease (FRA:AVLA) has a ROC % of 2.25% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Air Lease and its competitors.
Is Air Lease's ROC % too high?
Air Lease's current ROC % is 2.25%. The Business Services industry median ROC % is 5.92. Air Lease's value of 2.25% is 62% below this industry median. Overall, Air Lease has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Air Lease's ROC % compare to R and UHAL?
Air Lease's ROC % of 2.25% can be compared against companies in the Business Services industry. The industry median ROC % is 5.92. Air Lease's value of 2.25% is 62% below 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 Business Services company?
The median ROC % among Business Services companies is 5.92, based on 1,075 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. Air Lease's current ROC % of 2.25% is 62% below 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 Air Lease and its competitors. For the Business Services industry, the median ROC % is 5.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Lease's current ROC % is 2.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Lease stock overvalued right now?
Air Lease (FRA:AVLA) has a current ROC % of 2.25%. The stock's GF Value™ is €45.29, compared to a current price of €55.50 — trading 22.5% above its estimated fair value. The current ROC % is 2.25% and 62% below the Business Services industry median of 5.92. Air Lease's overall GF Score™ is 64/100 with 11 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 Air Lease (FRA:AVLA), the current ROC % is 2.25% 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 Air Lease (FRA:AVLA) Overvalued in 2026?
Based on GuruFocus' analysis, Air Lease stock appears to be overvalued.
The current stock price of €55.50 is trading 22.5% above its estimated GF Value™ of €45.29.
Key valuation signals for FRA:AVLA:
ROC %: 2.25%
GF Value™: €45.29 vs. price of €55.50 (22.5% above fair value)
Industry Position: 62% below the Business Services median
No single metric tells the full story. See the FRA:AVLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Lease Corp is an aircraft leasing company based in the United States. It is engaged in the modern, fuel-efficient new technology commercial jet aircraft directly from aircraft manufacturers and leasing those aircraft to airlines throughout the world to generate attractive returns on equity. The company also sells aircraft from its fleet to third parties, including other leasing companies, financial services companies, airlines, and other investors, and offers fleet management services to investors and owners of aircraft portfolios for a management fee. Geographically, it derives a maximum of its revenue from the Europe and the rest from Asia Pacific, Middle East and Africa, Central America, South America, Mexico, the United States, and Canada.
64GF Score
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