ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Avacta Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -125.81%.
As of today (2026-06-24), Avacta Group's WACC % is 14.80%. Avacta Group's ROC % is -93.58% (calculated using TTM income statement data).
Avacta Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Avacta Group (LSE:AVCT) 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, Avacta Group's WACC % is 14.80%. Avacta Group's ROC % is -93.58% (calculated using TTM income statement data).
Avacta Group 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.
Avacta Group ROC % Related Terms
Avacta Group ROC % Historical Data
* Premium members only.
The historical data trend for Avacta Group'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 (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.
Avacta Group (LSE:AVCT) has a ROC % of -125.81% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Avacta Group and its competitors.
Is Avacta Group's ROC % too high?
Avacta Group's current ROC % is -125.81%. Overall, Avacta Group has a GF Score™ of 28/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avacta Group's ROC % compare to VRTX and REGN?
Avacta Group's ROC % of -125.81% can be compared against companies in the Biotechnology industry. 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 Biotechnology company?
A good ROC % depends on the Biotechnology industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Avacta Group and its competitors. Avacta Group's current ROC % is -125.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avacta Group stock overvalued right now?
Based on GuruFocus' analysis, Avacta Group (LSE:AVCT) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.49, compared to a current price of £0.72 — trading 47.3% above its estimated fair value. The current ROC % is -125.81%. Avacta Group's overall GF Score™ is 28/100 with 8 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 Avacta Group (LSE:AVCT), the current ROC % is -125.81% 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.
Is Avacta Group (LSE:AVCT) Overvalued in 2026?
Based on GuruFocus' analysis, Avacta Group stock appears to be overvalued.
The current stock price of £0.72 is trading 47.3% above its estimated GF Value™ of £0.49.
GuruFocus considers Avacta Group to be Significantly Overvalued.
Key valuation signals for LSE:AVCT:
ROC %: -125.81%
GF Value™: £0.49 vs. price of £0.72 (47.3% above fair value)
No single metric tells the full story. See the LSE:AVCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avacta Group PLC is a clinical-stage life sciences company expanding the reach of potent cancer therapies with the pre-CISION platform. pre-CISION is a proprietary warhead delivery system based on a tumor-specific protease (fibroblast activation protein or FAP) that is designed to concentrate potent warheads in the tumor microenvironment while sparing normal tissues. The company's pipeline consists of pre-CISION peptide drug conjugates (PDC) or Affimer drug conjugates (AffDC) that leverage the tumor-specific release mechanism, providing benefits over traditional antibody drug conjugates. The firm has one reportable segment, Therapeutics, which is engaged in the development of novel cancer therapies harnessing its proprietary technology. Geographically, it derives revenue from South Korea.
28GF Score
Get the complete analysis for LSE:AVCT
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:AVCT has been successfully added to your 
