ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Dorian LPG's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 21.92%.
As of today (2026-06-25), Dorian LPG's WACC % is 7.63%. Dorian LPG's ROC % is 14.02% (calculated using TTM income statement data).
Dorian LPG 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.
Dorian LPG (NYSE:LPG) 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, Dorian LPG's WACC % is 7.63%. Dorian LPG's ROC % is 14.02% (calculated using TTM income statement data).
Dorian LPG 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.
Dorian LPG ROC % Related Terms
Dorian LPG ROC % Historical Data
* Premium members only.
The historical data trend for Dorian LPG'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 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.
Dorian LPG (LPG) has a ROC % of 21.92% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Dorian LPG and its competitors.
Is Dorian LPG's ROC % too high?
Dorian LPG's current ROC % is 21.92%. The Oil & Gas industry median ROC % is 3.63. Dorian LPG's value of 21.92% is 503.9% above this industry median. Overall, Dorian LPG has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dorian LPG's ROC % compare to FLNG and GLP?
Dorian LPG's ROC % of 21.92% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.63. Dorian LPG's value of 21.92% is 503.9% 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 997 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. Dorian LPG's current ROC % of 21.92% is 503.9% 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 Dorian LPG 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. Dorian LPG's current ROC % is 21.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dorian LPG stock overvalued right now?
Based on GuruFocus' analysis, Dorian LPG (LPG) is currently considered Modestly Overvalued. The stock's GF Value™ is $33.74, compared to a current price of $39.92 — trading 18.3% above its estimated fair value. The current ROC % is 21.92% and 503.9% above the Oil & Gas industry median of 3.63. Dorian LPG's overall GF Score™ is 86/100 with 3 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 Dorian LPG (LPG), the current ROC % is 21.92% 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 Dorian LPG (LPG) Overvalued in 2026?
Based on GuruFocus' analysis, Dorian LPG stock appears to be overvalued.
The current stock price of $39.92 is trading 18.3% above its estimated GF Value™ of $33.74.
GuruFocus considers Dorian LPG to be Modestly Overvalued.
Key valuation signals for LPG:
ROC %: 21.92%
GF Value™: $33.74 vs. price of $39.92 (18.3% above fair value)
Industry Position: 503.9% above the Oil & Gas median
No single metric tells the full story. See the LPG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dorian LPG Ltd is an international liquefied petroleum gas shipping company focused on owning and operating gas carriers, or VLGCs. The company currently owns and operates around 22 modern VLGCs, including nineteen new fuel-efficient 84,000 cbm ECO-design VLGCs. Dorian LPG has offices in Connecticut, USA, London, United Kingdom, and Athens, Greece. IT operates in one reportable segment, the international transportation of LPG.
86GF Score
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