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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Preatoni Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 5.62%.
As of today (2026-07-25), Preatoni Group's WACC % is 8.31%. Preatoni Group's ROC % is 2.44% (calculated using TTM income statement data).
Preatoni Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Preatoni Group (FRA:GO2) 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, Preatoni Group's WACC % is 8.31%. Preatoni Group's ROC % is 2.44% (calculated using TTM income statement data).
Preatoni Group 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.
Preatoni Group ROC % Related Terms
Preatoni Group ROC % Historical Data
* Premium members only.
The historical data trend for Preatoni 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 two times the semi-annual (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.
Preatoni Group (FRA:GO2) has a ROC % of 5.62% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Preatoni Group and its competitors.
Is Preatoni Group's ROC % too high?
Preatoni Group's current ROC % is 5.62%. The Travel & Leisure industry median ROC % is 3.73. Preatoni Group's value of 5.62% is 50.7% above this industry median. Overall, Preatoni Group has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Preatoni Group's ROC % compare to LVS and MGM?
Preatoni Group's ROC % of 5.62% can be compared against companies in the Travel & Leisure industry. The industry median ROC % is 3.73. Preatoni Group's value of 5.62% is 50.7% 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 Travel & Leisure company?
The median ROC % among Travel & Leisure companies is 3.73, based on 831 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. Preatoni Group's current ROC % of 5.62% is 50.7% 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 Preatoni Group and its competitors. For the Travel & Leisure industry, the median ROC % is 3.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Preatoni Group's current ROC % is 5.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Preatoni Group stock overvalued right now?
Preatoni Group (FRA:GO2) has a current ROC % of 5.62%. The current ROC % is 5.62% and 50.7% above the Travel & Leisure industry median of 3.73. Preatoni Group's overall GF Score™ is 13/100 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 Preatoni Group (FRA:GO2), the current ROC % is 5.62% 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.
Preatoni Group SA specializes in the ownership and operation of assets dedicated to the hotel and tourism industry and in real estate development. The hotel and tourism activities are carried out: In Egypt where the Group owns the Domina Coral Bay resort in Sharm El Sheikh, In Italy, where the Group owns and operates (i) in Zagarella, near Palermo, the Domina resort Zagarella, (ii) in Milan, a business hotel and (iii) in Borgo on Lake Garda a park of 27 apartments operated. Real estate development activities are carried out: In the Baltic countries (Estonia, Latvia and Lithuania), which have gradually specialized in the creation of residential districts and the development of mid-range and high-end residential buildings.
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