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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 %. Lai Sun Development Co's annualized return on capital (ROC %) for the quarter that ended in Jan. 2026 was -0.64%.
As of today (2026-08-09), Lai Sun Development Co's WACC % is 3.92%. Lai Sun Development Co's ROC % is -1.64% (calculated using TTM income statement data).
Lai Sun Development Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Lai Sun Development Co (FRA:LAY3) 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, Lai Sun Development Co's WACC % is 3.92%. Lai Sun Development Co's ROC % is -1.64% (calculated using TTM income statement data).
Lai Sun Development Co 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.
* 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 (Jan. 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.
Lai Sun Development Co (FRA:LAY3) has a ROC % of -0.64% as of Jan. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Lai Sun Development Co and its competitors.
Is Lai Sun Development Co's ROC % too high?
Lai Sun Development Co's current ROC % is -0.64%. Overall, Lai Sun Development Co has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Lai Sun Development Co's ROC % compare to competitors?
Lai Sun Development Co's ROC % of -0.64% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.15. 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 Real Estate company?
The median ROC % among Real Estate companies is 2.15, based on 1,758 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. 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 Lai Sun Development Co and its competitors. For the Real Estate industry, the median ROC % is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lai Sun Development Co's current ROC % is -0.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lai Sun Development Co stock overvalued right now?
Lai Sun Development Co (FRA:LAY3) has a current ROC % of -0.64%. The stock's GF Value™ is €0.06, compared to a current price of €0.08 — trading 31.7% above its estimated fair value. The current ROC % is -0.64%. Lai Sun Development Co's overall GF Score™ is 34/100 with 4 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 Lai Sun Development Co (FRA:LAY3), the current ROC % is -0.64% as of Jan. 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 Lai Sun Development Co (FRA:LAY3) Overvalued in 2026?
Based on GuruFocus' analysis, Lai Sun Development Co stock appears to be overvalued.
The current stock price of €0.08 is trading 31.7% above its estimated GF Value™ of €0.06.
Key valuation signals for FRA:LAY3:
ROC %: -0.64%
GF Value™: €0.06 vs. price of €0.08 (31.7% above fair value)
No single metric tells the full story. See the FRA:LAY3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lai Sun Development Co Ltd is an investment holding company. Along with its subsidiaries, the company is engaged in various reportable operating segments such as; property development and sales; property investment; hotel operation; restaurant operation; media and entertainment; film and TV programs; cinema operation; theme park operation, and others. The property development and sales segment which derives a majority of its revenue, is engaged in property development and the sale of properties. Geographically, it derives a majority of its revenue from Mainland China and Macau, and the rest from Hong Kong, the United Kingdom, Vietnam, and other regions.
34GF Score
Get the complete analysis for FRA:LAY3
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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