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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 %. Lajin Entertainment Network Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -27.71%.
As of today (2026-09-01), Lajin Entertainment Network Group's WACC % is 5.41%. Lajin Entertainment Network Group's ROC % is -26.05% (calculated using TTM income statement data).
Lajin Entertainment Network Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Lajin Entertainment Network Group (HKSE:08172) 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, Lajin Entertainment Network Group's WACC % is 5.41%. Lajin Entertainment Network Group's ROC % is -26.05% (calculated using TTM income statement data).
Lajin Entertainment Network 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.
Lajin Entertainment Network Group ROC % Related Terms
Lajin Entertainment Network Group 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.
Lajin Entertainment Network Group (HKSE:08172) has a ROC % of -27.71% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Lajin Entertainment Network Group and its competitors.
Is Lajin Entertainment Network Group's ROC % too high?
Lajin Entertainment Network Group's current ROC % is -27.71%. Overall, Lajin Entertainment Network Group has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Lajin Entertainment Network Group's ROC % compare to NFLX and DIS?
Lajin Entertainment Network Group's ROC % of -27.71% can be compared against companies in the Media - Diversified industry. The industry median ROC % is 1.57. 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 Media - Diversified company?
The median ROC % among Media - Diversified companies is 1.57, based on 1,003 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 Lajin Entertainment Network Group and its competitors. For the Media - Diversified industry, the median ROC % is 1.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lajin Entertainment Network Group's current ROC % is -27.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lajin Entertainment Network Group stock overvalued right now?
Lajin Entertainment Network Group (HKSE:08172) has a current ROC % of -27.71%. The stock's GF Value™ is HK$0.10, compared to a current price of HK$0.19 — trading 90% above its estimated fair value. The current ROC % is -27.71%. Lajin Entertainment Network Group's overall GF Score™ is 30/100 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 Lajin Entertainment Network Group (HKSE:08172), the current ROC % is -27.71% 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 Lajin Entertainment Network Group (HKSE:08172) Overvalued in 2026?
Based on GuruFocus' analysis, Lajin Entertainment Network Group stock appears to be overvalued.
The current stock price of HK$0.19 is trading 90% above its estimated GF Value™ of HK$0.10.
Key valuation signals for HKSE:08172:
ROC %: -27.71%
GF Value™: HK$0.10 vs. price of HK$0.19 (90% above fair value)
No single metric tells the full story. See the HKSE:08172 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lajin Entertainment Network Group Ltd is an investment holding company. The company's operating segment includes Artiste management; Movies, TV programmes, and internet content, and the New media business. The majority of the company's revenue is generated from the movies, TV programmes, and internet content segment, which comprises investment, production, and distribution of movies, TV programmes, and investment in internet content. The artiste management segment comprises the provision of artiste management services; the new media business segment comprises the development of software systems, the promotion and demonstration through the new media channels (i.e., PASS CARD, AMBER APP, etc.). Geographically, it derives a majority of its revenue from Mainland China.
30GF Score
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