ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Enterprise Development Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 11.89%.
As of today (2026-07-12), Enterprise Development Holdings's WACC % is 1.37%. Enterprise Development Holdings's ROC % is 14.55% (calculated using TTM income statement data).
Enterprise Development Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Enterprise Development Holdings (HKSE:01808) 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, Enterprise Development Holdings's WACC % is 1.37%. Enterprise Development Holdings's ROC % is 14.55% (calculated using TTM income statement data).
Enterprise Development Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Enterprise Development Holdings ROC % Related Terms
Enterprise Development Holdings ROC % Historical Data
* 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.
Enterprise Development Holdings (HKSE:01808) has a ROC % of 11.89% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Enterprise Development Holdings and its competitors.
Is Enterprise Development Holdings' ROC % too high?
Enterprise Development Holdings' current ROC % is 11.89%. The Software industry median ROC % is 3.09. Enterprise Development Holdings' value of 11.89% is 284.8% above this industry median. Overall, Enterprise Development Holdings has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Enterprise Development Holdings' ROC % compare to UBER and SHOP?
Enterprise Development Holdings' ROC % of 11.89% can be compared against companies in the Software industry. The industry median ROC % is 3.09. Enterprise Development Holdings' value of 11.89% is 284.8% 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 Software company?
The median ROC % among Software companies is 3.09, based on 2,829 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. Enterprise Development Holdings's current ROC % of 11.89% is 284.8% 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 Enterprise Development Holdings and its competitors. For the Software industry, the median ROC % is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Enterprise Development Holdings's current ROC % is 11.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Enterprise Development Holdings stock overvalued right now?
Based on GuruFocus' analysis, Enterprise Development Holdings (HKSE:01808) is currently considered Possible Value Trap. The stock's GF Value™ is HK$42.73, compared to a current price of HK$2.70 — trading 93.7% below its estimated fair value. The current ROC % is 11.89% and 284.8% above the Software industry median of 3.09. Enterprise Development Holdings' overall GF Score™ is 67/100 with 5 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 Enterprise Development Holdings (HKSE:01808), the current ROC % is 11.89% 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 Enterprise Development Holdings (HKSE:01808) Overvalued in 2026?
Based on GuruFocus' analysis, Enterprise Development Holdings stock appears to be undervalued.
The current stock price of HK$2.70 is trading 93.7% below its estimated GF Value™ of HK$42.73.
GuruFocus considers Enterprise Development Holdings to be Possible Value Trap.
Key valuation signals for HKSE:01808:
ROC %: 11.89%
GF Value™: HK$42.73 vs. price of HK$2.70 (93.7% below fair value)
Industry Position: 284.8% above the Software median
No single metric tells the full story. See the HKSE:01808 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Enterprise Development Holdings Business Description
Enterprise Development Holdings Ltd is engaged in the provision of integrated business software solutions and sale of software licenses, hardware products and other products. Leveraging the basic database software and technology, cloud engineered systems, and enterprise software products provided by multinational computer technology companies, the group provides integration services and tailor-made solutions to cater for the needs of different corporate clients in different industries. It derives revenue from Software maintenance and other services, and Sale of software license, hardware products and other products. Geographically, it operates across the PRC, Thailand, and Hong Kong with majority of revenue deriving from the PRC.
67GF Score
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