ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Lincoln International's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 5.58%.
As of today (2026-07-09), Lincoln International's WACC % is 7.67%. Lincoln International's ROC % is 5.58% (calculated using TTM income statement data).
Lincoln International earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Lincoln International (NYSE:LCLN) 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, Lincoln International's WACC % is 7.67%. Lincoln International's ROC % is 5.58% (calculated using TTM income statement data).
Lincoln International 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 one times the 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.
Lincoln International (LCLN) has a ROC % of 5.58% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Lincoln International and its competitors.
Is Lincoln International's ROC % too high?
Lincoln International's current ROC % is 5.58%. The Capital Markets industry median ROC % is 1.34. Lincoln International's value of 5.58% is 318% above this industry median. Overall, Lincoln International has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Lincoln International's ROC % compare to TIGR and ABTC?
Lincoln International's ROC % of 5.58% can be compared against companies in the Capital Markets industry. The industry median ROC % is 1.34. Lincoln International's value of 5.58% is 318% 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 Capital Markets company?
The median ROC % among Capital Markets companies is 1.34, based on 694 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. Lincoln International's current ROC % of 5.58% is 318% 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 Lincoln International and its competitors. For the Capital Markets industry, the median ROC % is 1.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lincoln International's current ROC % is 5.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lincoln International stock overvalued right now?
Lincoln International (LCLN) has a current ROC % of 5.58%. The current ROC % is 5.58% and 318% above the Capital Markets industry median of 1.34. Lincoln International's overall GF Score™ is 21/100 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 Lincoln International (LCLN), the current ROC % is 5.58% 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.
Lincoln International Inc is an independent investment banking advisory company focused on private capital markets. The company operates its business through its two operating segments: Investment Banking Advisory and Valuations and Opinions. The Investment Banking Advisory segment offers a range of services related to mergers and acquisitions, with key areas of focus including sell-side advisory, buy-side advisory, asset sales and divestitures, restructuring, primary and secondary capital raising, and merger-related engagements. The Valuations and Opinions segment provides valuation services to investment funds and financial institutions. The majority of revenue is derived from the Investment Banking Advisory segment. Geographically, the maximum revenue is derived from the Americas.
21GF Score
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