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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 %. Melbourne Enterprises's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 1.14%.
As of today (2026-08-27), Melbourne Enterprises's WACC % is 5.79%. Melbourne Enterprises's ROC % is 1.61% (calculated using TTM income statement data).
Melbourne Enterprises earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Melbourne Enterprises's WACC % is 5.79%. Melbourne Enterprises's ROC % is 1.61% (calculated using TTM income statement data).
Melbourne Enterprises 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 (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.
Melbourne Enterprises (HKSE:00158) has a ROC % of 1.14% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Melbourne Enterprises and its competitors.
Is Melbourne Enterprises' ROC % too high?
Melbourne Enterprises' current ROC % is 1.14%. The Real Estate industry median ROC % is 2.12. Melbourne Enterprises' value of 1.14% is 46.2% below this industry median. Overall, Melbourne Enterprises has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Melbourne Enterprises' ROC % compare to CBRE and BEKE?
Melbourne Enterprises' ROC % of 1.14% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.12. Melbourne Enterprises' value of 1.14% is 46.2% below 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 Real Estate company?
The median ROC % among Real Estate companies is 2.12, based on 1,756 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. Melbourne Enterprises's current ROC % of 1.14% is 46.2% below 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 Melbourne Enterprises and its competitors. For the Real Estate industry, the median ROC % is 2.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Melbourne Enterprises's current ROC % is 1.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Melbourne Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Melbourne Enterprises (HKSE:00158) is currently considered Fairly Valued. The stock's GF Value™ is HK$63.95, compared to a current price of HK$58.00 — trading 9.3% below its estimated fair value. The current ROC % is 1.14% and 46.2% below the Real Estate industry median of 2.12. Melbourne Enterprises' overall GF Score™ is 60/100 with 3 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 Melbourne Enterprises (HKSE:00158), the current ROC % is 1.14% 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 Melbourne Enterprises (HKSE:00158) Overvalued in 2026?
Based on GuruFocus' analysis, Melbourne Enterprises stock appears to be undervalued.
The current stock price of HK$58.00 is trading 9.3% below its estimated GF Value™ of HK$63.95.
GuruFocus considers Melbourne Enterprises to be Fairly Valued.
Key valuation signals for HKSE:00158:
ROC %: 1.14%
GF Value™: HK$63.95 vs. price of HK$58.00 (9.3% below fair value)
Industry Position: 46.2% below the Real Estate median
No single metric tells the full story. See the HKSE:00158 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Melbourne Enterprises Ltd is an investment holding company. The company and its subsidiary company are principally engaged in property investment and investment holding in Hong Kong. The company's only operating segment is property investment. It generates the majority of revenue from the Rental income. The properties under the company include Melbourne Plaza, Kimley Commercial Building, as well as Retail properties in the On Hing Mansion Shop 9B.
60GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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