ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Dentsu Group's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.03%.
As of today (2026-06-25), Dentsu Group's WACC % is 4.81%. Dentsu Group's ROC % is 10.43% (calculated using TTM income statement data).
Dentsu 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.
Dentsu Group (FRA:DEN) 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, Dentsu Group's WACC % is 4.81%. Dentsu Group's ROC % is 10.43% (calculated using TTM income statement data).
Dentsu 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.
Dentsu Group ROC % Related Terms
Dentsu Group ROC % Historical Data
* Premium members only.
The historical data trend for Dentsu 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.
Dentsu Group (FRA:DEN) has a ROC % of 8.03% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Dentsu Group and its competitors.
Is Dentsu Group's ROC % too high?
Dentsu Group's current ROC % is 8.03%. The Media - Diversified industry median ROC % is 1.41. Dentsu Group's value of 8.03% is 471.5% above this industry median. Overall, Dentsu Group has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Dentsu Group's ROC % compare to APP and OMC?
Dentsu Group's ROC % of 8.03% can be compared against companies in the Media - Diversified industry. The industry median ROC % is 1.41. Dentsu Group's value of 8.03% is 471.5% 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 Media - Diversified company?
The median ROC % among Media - Diversified companies is 1.41, based on 1,016 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. Dentsu Group's current ROC % of 8.03% is 471.5% 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 Dentsu Group and its competitors. For the Media - Diversified industry, the median ROC % is 1.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dentsu Group's current ROC % is 8.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dentsu Group stock overvalued right now?
Dentsu Group (FRA:DEN) has a current ROC % of 8.03%. The stock's GF Value™ is €22.12, compared to a current price of €15.90 — trading 28.1% below its estimated fair value. The current ROC % is 8.03% and 471.5% above the Media - Diversified industry median of 1.41. Dentsu Group's overall GF Score™ is 69/100 with 5 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 Dentsu Group (FRA:DEN), the current ROC % is 8.03% 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 Dentsu Group (FRA:DEN) Overvalued in 2026?
Based on GuruFocus' analysis, Dentsu Group stock appears to be undervalued.
The current stock price of €15.90 is trading 28.1% below its estimated GF Value™ of €22.12.
Key valuation signals for FRA:DEN:
ROC %: 8.03%
GF Value™: €22.12 vs. price of €15.90 (28.1% below fair value)
Industry Position: 471.5% above the Media - Diversified median
No single metric tells the full story. See the FRA:DEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dentsu Group is the top advertising agency in Japan and the fifth-largest advertising network in the world. It is the oldest advertising agency in Japan, with the original company being established in 1901. Over the years, Dentsu expanded its global footprint through mergers and acquisitions. Currently, international sales account for about 60% of total revenue.
69GF Score
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