ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Exemplar REITail's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 7.71%.
As of today (2026-06-26), Exemplar REITail's WACC % is 8.33%. Exemplar REITail's ROC % is 7.78% (calculated using TTM income statement data).
Exemplar REITail earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Exemplar REITail (JSE:EXP) 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, Exemplar REITail's WACC % is 8.33%. Exemplar REITail's ROC % is 7.78% (calculated using TTM income statement data).
Exemplar REITail 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.
Exemplar REITail ROC % Related Terms
Exemplar REITail ROC % Historical Data
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The historical data trend for Exemplar REITail'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 (Feb. 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.
Exemplar REITail (JSE:EXP) has a ROC % of 7.71% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Exemplar REITail and its competitors.
Is Exemplar REITail's ROC % too high?
Exemplar REITail's current ROC % is 7.71%. The REITs industry median ROC % is 3.74. Exemplar REITail's value of 7.71% is 106.1% above this industry median. Overall, Exemplar REITail has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Exemplar REITail's ROC % compare to SPG and O?
Exemplar REITail's ROC % of 7.71% can be compared against companies in the REITs industry. The industry median ROC % is 3.74. Exemplar REITail's value of 7.71% is 106.1% 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 REITs company?
The median ROC % among REITs companies is 3.74, based on 750 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. Exemplar REITail's current ROC % of 7.71% is 106.1% 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 Exemplar REITail and its competitors. For the REITs industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Exemplar REITail's current ROC % is 7.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Exemplar REITail stock overvalued right now?
Based on GuruFocus' analysis, Exemplar REITail (JSE:EXP) is currently considered Modestly Overvalued. The stock's GF Value™ is R15.65, compared to a current price of R18.00 — trading 15% above its estimated fair value. The current ROC % is 7.71% and 106.1% above the REITs industry median of 3.74. Exemplar REITail's overall GF Score™ is 73/100 with 6 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 Exemplar REITail (JSE:EXP), the current ROC % is 7.71% as of Feb. 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 Exemplar REITail (JSE:EXP) Overvalued in 2026?
Based on GuruFocus' analysis, Exemplar REITail stock appears to be overvalued.
The current stock price of R18.00 is trading 15% above its estimated GF Value™ of R15.65.
GuruFocus considers Exemplar REITail to be Modestly Overvalued.
Key valuation signals for JSE:EXP:
ROC %: 7.71%
GF Value™: R15.65 vs. price of R18.00 (15% above fair value)
No single metric tells the full story. See the JSE:EXP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Exemplar REITail Ltd is a real estate investment trust which develops, owns and manages township and rural retail real estate. The company is the only fund in the country focused purely on retail in under-serviced areas that offers stakeholders investment opportunities. The company's retail segments based on geography consist of Gauteng, Mpumalanga, KwaZulu-Natal, Limpopo, Eastern and Western Cape.
73GF 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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