ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Inspired Entertainment's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 4.54%.
As of today (2026-06-24), Inspired Entertainment's WACC % is 11.38%. Inspired Entertainment's ROC % is 12.75% (calculated using TTM income statement data).
Inspired Entertainment 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.
Inspired Entertainment (NAS:INSE) 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, Inspired Entertainment's WACC % is 11.38%. Inspired Entertainment's ROC % is 12.75% (calculated using TTM income statement data).
Inspired Entertainment 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.
* 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.
Inspired Entertainment (INSE) has a ROC % of 4.54% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Inspired Entertainment and its competitors.
Is Inspired Entertainment's ROC % too high?
Inspired Entertainment's current ROC % is 4.54%. The Travel & Leisure industry median ROC % is 3.74. Inspired Entertainment's value of 4.54% is 21.4% above this industry median. Overall, Inspired Entertainment has a GF Score™ of 62/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Inspired Entertainment's ROC % compare to GAMB and ROLR?
Inspired Entertainment's ROC % of 4.54% can be compared against companies in the Travel & Leisure industry. The industry median ROC % is 3.74. Inspired Entertainment's value of 4.54% is 21.4% 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 Travel & Leisure company?
The median ROC % among Travel & Leisure companies is 3.74, based on 833 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. Inspired Entertainment's current ROC % of 4.54% is 21.4% 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 Inspired Entertainment and its competitors. For the Travel & Leisure industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Inspired Entertainment's current ROC % is 4.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inspired Entertainment stock overvalued right now?
Based on GuruFocus' analysis, Inspired Entertainment (INSE) is currently considered Fairly Valued. The stock's GF Value™ is $8.36, compared to a current price of $8.05 — trading 3.7% below its estimated fair value. The current ROC % is 4.54% and 21.4% above the Travel & Leisure industry median of 3.74. Inspired Entertainment's overall GF Score™ is 62/100 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 Inspired Entertainment (INSE), the current ROC % is 4.54% 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 Inspired Entertainment (INSE) Overvalued in 2026?
Based on GuruFocus' analysis, Inspired Entertainment stock appears to be undervalued.
The current stock price of $8.05 is trading 3.7% below its estimated GF Value™ of $8.36.
GuruFocus considers Inspired Entertainment to be Fairly Valued.
Key valuation signals for INSE:
ROC %: 4.54%
GF Value™: $8.36 vs. price of $8.05 (3.7% below fair value)
Industry Position: 21.4% above the Travel & Leisure median
No single metric tells the full story. See the INSE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Inspired Entertainment Inc is a gaming technology company, supplying content, platform and other products and services to licensed online and land-based lottery, betting and gaming operators of various countries through a range of distribution channels, on a business-to-business basis. The company provides digital gaming solutions (i) on its own proprietary and secure network, which accommodates a wide range of devices, including land-based gaming machine terminals, mobile devices and online computer applications, and (ii) through third party networks. It operates in four business segments: Gaming, Virtual Sports, Interactive and Leisure. The majority of revenue is derived from the Leisure Segment, which includes the supply of the gaming and amusement machines.
62GF Score
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