ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Bajaj Mobility AG's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -16.63%.
As of today (2026-06-26), Bajaj Mobility AG's WACC % is 11.19%. Bajaj Mobility AG's ROC % is -20.46% (calculated using TTM income statement data).
Bajaj Mobility AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Bajaj Mobility AG (FRA:PKTM) 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, Bajaj Mobility AG's WACC % is 11.19%. Bajaj Mobility AG's ROC % is -20.46% (calculated using TTM income statement data).
Bajaj Mobility AG 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.
Bajaj Mobility AG ROC % Related Terms
Bajaj Mobility AG ROC % Historical Data
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The historical data trend for Bajaj Mobility AG'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.
Bajaj Mobility AG (FRA:PKTM) has a ROC % of -16.63% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Bajaj Mobility AG and its competitors.
Is Bajaj Mobility AG's ROC % too high?
Bajaj Mobility AG's current ROC % is -16.63%. Overall, Bajaj Mobility AG has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bajaj Mobility AG's ROC % compare to TSLA and GM?
Bajaj Mobility AG's ROC % of -16.63% can be compared against companies in the Vehicles & Parts industry. The industry median ROC % is 5.07. 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 Vehicles & Parts company?
The median ROC % among Vehicles & Parts companies is 5.07, based on 1,316 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 Bajaj Mobility AG and its competitors. For the Vehicles & Parts industry, the median ROC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bajaj Mobility AG's current ROC % is -16.63%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bajaj Mobility AG stock overvalued right now?
Based on GuruFocus' analysis, Bajaj Mobility AG (FRA:PKTM) is currently considered Significantly Overvalued. The stock's GF Value™ is €11.42, compared to a current price of €18.50 — trading 62% above its estimated fair value. The current ROC % is -16.63%. Bajaj Mobility AG's overall GF Score™ is 58/100 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 Bajaj Mobility AG (FRA:PKTM), the current ROC % is -16.63% 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 Bajaj Mobility AG (FRA:PKTM) Overvalued in 2026?
Based on GuruFocus' analysis, Bajaj Mobility AG stock appears to be overvalued.
The current stock price of €18.50 is trading 62% above its estimated GF Value™ of €11.42.
GuruFocus considers Bajaj Mobility AG to be Significantly Overvalued.
Key valuation signals for FRA:PKTM:
ROC %: -16.63%
GF Value™: €11.42 vs. price of €18.50 (62% above fair value)
No single metric tells the full story. See the FRA:PKTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bajaj Mobility AG is a manufacturer of premium motorcycles and two- and three-wheelers, bringing together performance-driven brands such as KTM, Husqvarna Motorcycles, and GASGAS, along with high-performance components under the WP brand. Focused on the premium segment, the company emphasizes innovation, engineering excellence, and brand positioning. Its Motorcycle segment, which generates the highest revenue, covers the development, production, and sale of motorcycles and components across international markets. The Bicycle segment, operated through PIERER New Mobility GmbH, includes brands such as Husqvarna E-Bicycles, GASGAS Bicycles, and FELT Bicycles, offering electric and conventional bikes. The company derives the majority of its revenue from Europe (excluding Austria).
58GF Score
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