ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Everest Medicines's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -0.50%.
As of today (2026-07-06), Everest Medicines's WACC % is 11.92%. Everest Medicines's ROC % is -5.48% (calculated using TTM income statement data).
Everest Medicines earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Everest Medicines (HKSE:01952) 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, Everest Medicines's WACC % is 11.92%. Everest Medicines's ROC % is -5.48% (calculated using TTM income statement data).
Everest Medicines 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.
Everest Medicines ROC % Related Terms
Everest Medicines ROC % Historical Data
* Premium members only.
The historical data trend for Everest Medicines'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.
Everest Medicines (HKSE:01952) has a ROC % of -0.50% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Everest Medicines and its competitors.
Is Everest Medicines' ROC % too high?
Everest Medicines' current ROC % is -0.50%. Overall, Everest Medicines has a GF Score™ of 42/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Everest Medicines' ROC % compare to VRTX and REGN?
Everest Medicines' ROC % of -0.50% can be compared against companies in the Biotechnology industry. 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 Biotechnology company?
A good ROC % depends on the Biotechnology industry context. 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 Everest Medicines and its competitors. Everest Medicines's current ROC % is -0.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Everest Medicines stock overvalued right now?
Based on GuruFocus' analysis, Everest Medicines (HKSE:01952) is currently considered Possible Value Trap. The stock's GF Value™ is HK$291.14, compared to a current price of HK$28.64 — trading 90.2% below its estimated fair value. The current ROC % is -0.50%. Everest Medicines' overall GF Score™ is 42/100 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 Everest Medicines (HKSE:01952), the current ROC % is -0.50% 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 Everest Medicines (HKSE:01952) Overvalued in 2026?
Based on GuruFocus' analysis, Everest Medicines stock appears to be undervalued.
The current stock price of HK$28.64 is trading 90.2% below its estimated GF Value™ of HK$291.14.
GuruFocus considers Everest Medicines to be Possible Value Trap.
Key valuation signals for HKSE:01952:
ROC %: -0.50%
GF Value™: HK$291.14 vs. price of HK$28.64 (90.2% below fair value)
No single metric tells the full story. See the HKSE:01952 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Everest Medicines Ltd is a biopharmaceutical company that integrates discovery, licensing, clinical development, commercialization, and manufacturing of potentially novel or differentiated therapies and vaccines to address critical unmet medical needs initially in the Asia Pacific markets and eventually around the world. Its product pipeline includes: Nefecon (TarpeyoTM), EVER001, Eravacycline (Xerava), SPR206, and others. Geographically operates in Mainland China.
42GF Score
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