ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Fletcher King's annualized return on capital (ROC %) for the quarter that ended in Oct. 2025 was -9.40%.
As of today (2026-06-27), Fletcher King's WACC % is 11.41%. Fletcher King's ROC % is 4.72% (calculated using TTM income statement data).
Fletcher King earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Fletcher King (LSE:FLK) 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, Fletcher King's WACC % is 11.41%. Fletcher King's ROC % is 4.72% (calculated using TTM income statement data).
Fletcher King 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.
Fletcher King ROC % Related Terms
Fletcher King ROC % Historical Data
* Premium members only.
The historical data trend for Fletcher King'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 (Oct. 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.
Fletcher King (LSE:FLK) has a ROC % of -9.40% as of Oct. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Fletcher King and its competitors.
Is Fletcher King's ROC % too high?
Fletcher King's current ROC % is -9.40%. Overall, Fletcher King has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fletcher King's ROC % compare to CBRE and BEKE?
Fletcher King's ROC % of -9.40% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.19. 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 Real Estate company?
The median ROC % among Real Estate companies is 2.19, based on 1,757 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. 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 Fletcher King and its competitors. For the Real Estate industry, the median ROC % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fletcher King's current ROC % is -9.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fletcher King stock overvalued right now?
Based on GuruFocus' analysis, Fletcher King (LSE:FLK) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.46, compared to a current price of £0.65 — trading 41.3% above its estimated fair value. The current ROC % is -9.40%. Fletcher King's overall GF Score™ is 52/100 with 9 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 Fletcher King (LSE:FLK), the current ROC % is -9.40% as of Oct. 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 Fletcher King (LSE:FLK) Overvalued in 2026?
Based on GuruFocus' analysis, Fletcher King stock appears to be overvalued.
The current stock price of £0.65 is trading 41.3% above its estimated GF Value™ of £0.46.
GuruFocus considers Fletcher King to be Significantly Overvalued.
Key valuation signals for LSE:FLK:
ROC %: -9.40%
GF Value™: £0.46 vs. price of £0.65 (41.3% above fair value)
No single metric tells the full story. See the LSE:FLK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fletcher King PLC is a property fund management company. The company along with its subsidiaries provides a comprehensive range of property services and advice including property fund management, property asset management, rating, valuations, and investment broking throughout the United Kingdom. The group is organized into one operating segment which is General Services. It generates the majority of its revenue from the UK.
52GF Score
Get the complete analysis for LSE:FLK
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:FLK has been successfully added to your 
