ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. SoftBank Group's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -2.88%.
As of today (2026-06-24), SoftBank Group's WACC % is 11.75%. SoftBank Group's ROC % is -0.01% (calculated using TTM income statement data).
SoftBank Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
SoftBank Group (FRA:SFT) 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, SoftBank Group's WACC % is 11.75%. SoftBank Group's ROC % is -0.01% (calculated using TTM income statement data).
SoftBank 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.
SoftBank Group ROC % Related Terms
SoftBank Group ROC % Historical Data
* Premium members only.
The historical data trend for SoftBank 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.
SoftBank Group (FRA:SFT) has a ROC % of -2.88% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on SoftBank Group and its competitors.
Is SoftBank Group's ROC % too high?
SoftBank Group's current ROC % is -2.88%. Overall, SoftBank Group has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SoftBank Group's ROC % compare to TMUS and VZ?
SoftBank Group's ROC % of -2.88% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.54. 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 Telecommunication Services company?
The median ROC % among Telecommunication Services companies is 4.54, based on 366 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 SoftBank Group and its competitors. For the Telecommunication Services industry, the median ROC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SoftBank Group's current ROC % is -2.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SoftBank Group stock overvalued right now?
Based on GuruFocus' analysis, SoftBank Group (FRA:SFT) is currently considered Significantly Overvalued. The stock's GF Value™ is €15.13, compared to a current price of €35.97 — trading 137.7% above its estimated fair value. The current ROC % is -2.88%. SoftBank Group's overall GF Score™ is 61/100 with 8 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 SoftBank Group (FRA:SFT), the current ROC % is -2.88% 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 SoftBank Group (FRA:SFT) Overvalued in 2026?
Based on GuruFocus' analysis, SoftBank Group stock appears to be overvalued.
The current stock price of €35.97 is trading 137.7% above its estimated GF Value™ of €15.13.
GuruFocus considers SoftBank Group to be Significantly Overvalued.
Key valuation signals for FRA:SFT:
ROC %: -2.88%
GF Value™: €15.13 vs. price of €35.97 (137.7% above fair value)
No single metric tells the full story. See the FRA:SFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SoftBank is a Japan-based telecom and e-commerce conglomerate that has expanded mainly through acquisitions, and its key assets include a 40%-owned mobile and fixed broadband telecom operator business in Japan. It also owns 90% of semiconductor chip designer Arm Holdings following the 2023 IPO of this business, and has a vast portfolio of mainly internet- and e-commerce-focused early-stage investments. It is also a general partner of the USD 100 billion SoftBank Vision Fund 1 and sole investor in SoftBank Vision Fund 2, both of which primarily invest in pre-IPO internet and AI companies. Recently, it has begun investing in OpenAI.
61GF Score
Get the complete analysis for FRA:SFT
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:SFT has been successfully added to your 
