ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Oil & Gas Development Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 9.72%.
As of today (2026-06-24), Oil & Gas Development Co's WACC % is 10.68%. Oil & Gas Development Co's ROC % is 8.45% (calculated using TTM income statement data).
Oil & Gas Development Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Oil & Gas Development Co (KAR:OGDC) 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, Oil & Gas Development Co's WACC % is 10.68%. Oil & Gas Development Co's ROC % is 8.45% (calculated using TTM income statement data).
Oil & Gas Development Co 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.
* 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.
Oil & Gas Development Co (KAR:OGDC) has a ROC % of 9.72% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Oil & Gas Development Co and its competitors.
Is Oil & Gas Development Co's ROC % too high?
Oil & Gas Development Co's current ROC % is 9.72%. The Oil & Gas industry median ROC % is 3.63. Oil & Gas Development Co's value of 9.72% is 168.1% above this industry median. Overall, Oil & Gas Development Co has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Oil & Gas Development Co's ROC % compare to COP and EOG?
Oil & Gas Development Co's ROC % of 9.72% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.63. Oil & Gas Development Co's value of 9.72% is 168.1% 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 an Oil & Gas company?
The median ROC % among Oil & Gas companies is 3.63, based on 998 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. Oil & Gas Development Co's current ROC % of 9.72% is 168.1% 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 Oil & Gas Development Co and its competitors. For the Oil & Gas industry, the median ROC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oil & Gas Development Co's current ROC % is 9.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oil & Gas Development Co stock overvalued right now?
Based on GuruFocus' analysis, Oil & Gas Development Co (KAR:OGDC) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨170.61, compared to a current price of ₨339.96 — trading 99.3% above its estimated fair value. The current ROC % is 9.72% and 168.1% above the Oil & Gas industry median of 3.63. Oil & Gas Development Co's overall GF Score™ is 86/100 with 7 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 Oil & Gas Development Co (KAR:OGDC), the current ROC % is 9.72% 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 Oil & Gas Development Co (KAR:OGDC) Overvalued in 2026?
Based on GuruFocus' analysis, Oil & Gas Development Co stock appears to be overvalued.
The current stock price of ₨339.96 is trading 99.3% above its estimated GF Value™ of ₨170.61.
GuruFocus considers Oil & Gas Development Co to be Significantly Overvalued.
Key valuation signals for KAR:OGDC:
ROC %: 9.72%
GF Value™: ₨170.61 vs. price of ₨339.96 (99.3% above fair value)
Industry Position: 168.1% above the Oil & Gas median
No single metric tells the full story. See the KAR:OGDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Oil & Gas Development Co Ltd is a Pakistani state-owned oil and gas exploration and production company. It operates a broad portfolio of oil and gas fields across Pakistan, focusing on exploring, developing, producing, and selling crude oil, natural gas, liquefied petroleum gas, and sulfur. The company generates revenue through the sale of these petroleum products, supplying sectors like power generation, fertilizer, and distribution companies. The company also pursues opportunities to expand domestically and internationally, including involvement in mining and energy projects beyond Pakistan.
86GF Score
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