ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. PBT Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was 37.79%.
As of today (2026-06-27), PBT Holdings's WACC % is 9.65%. PBT Holdings's ROC % is 36.93% (calculated using TTM income statement data).
PBT 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.
PBT Holdings (JSE:PBT) 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, PBT Holdings's WACC % is 9.65%. PBT Holdings's ROC % is 36.93% (calculated using TTM income statement data).
PBT 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.
PBT Holdings ROC % Related Terms
PBT Holdings ROC % Historical Data
* Premium members only.
The historical data trend for PBT Holdings'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 (Sep. 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.
PBT Holdings (JSE:PBT) has a ROC % of 37.79% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on PBT Holdings and its competitors.
Is PBT Holdings' ROC % too high?
PBT Holdings' current ROC % is 37.79%. The Software industry median ROC % is 3.11. PBT Holdings' value of 37.79% is 1117.1% above this industry median. Overall, PBT Holdings has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does PBT Holdings' ROC % compare to IBM and ACN?
PBT Holdings' ROC % of 37.79% can be compared against companies in the Software industry. The industry median ROC % is 3.11. PBT Holdings' value of 37.79% is 1117.1% 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 Software company?
The median ROC % among Software companies is 3.11, based on 2,830 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. PBT Holdings's current ROC % of 37.79% is 1117.1% 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 PBT Holdings and its competitors. For the Software industry, the median ROC % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PBT Holdings's current ROC % is 37.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PBT Holdings stock overvalued right now?
Based on GuruFocus' analysis, PBT Holdings (JSE:PBT) is currently considered Fairly Valued. The stock's GF Value™ is R6.96, compared to a current price of R6.71 — trading 3.6% below its estimated fair value. The current ROC % is 37.79% and 1117.1% above the Software industry median of 3.11. PBT Holdings' overall GF Score™ is 74/100 with 2 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 PBT Holdings (JSE:PBT), the current ROC % is 37.79% as of Sep. 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 PBT Holdings (JSE:PBT) Overvalued in 2026?
Based on GuruFocus' analysis, PBT Holdings stock appears to be undervalued.
The current stock price of R6.71 is trading 3.6% below its estimated GF Value™ of R6.96.
GuruFocus considers PBT Holdings to be Fairly Valued.
Key valuation signals for JSE:PBT:
ROC %: 37.79%
GF Value™: R6.96 vs. price of R6.71 (3.6% below fair value)
Industry Position: 1117.1% above the Software median
No single metric tells the full story. See the JSE:PBT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PBT Holdings Ltd, formerly known as PBT Group Ltd, is a South African-based company that offers information management and data analytics services. It serves finance, insurance, telecommunications, retail, petroleum and medical healthcare industries. The services provided by the company include data engineering, analytics and visualization, artificial intelligence, managed solutions, advisory and strategic services, application development and others. Its operating segments are based on geographical locations namely South Africa, Europe and the United Kingdom. The segment includes consulting and implementation of data, management information software and healthcare administration services provided in the Republic of South Africa, Europe, the United Kingdom, and also Australia.
74GF Score
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