ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Games Workshop Group's annualized return on capital (ROC %) for the quarter that ended in Nov. 2025 was 93.58%.
As of today (2026-06-26), Games Workshop Group's WACC % is 7.65%. Games Workshop Group's ROC % is 90.27% (calculated using TTM income statement data).
Games Workshop Group 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.
Games Workshop Group (LSE:GAW) 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, Games Workshop Group's WACC % is 7.65%. Games Workshop Group's ROC % is 90.27% (calculated using TTM income statement data).
Games Workshop Group 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.
* 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 (Nov. 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.
Games Workshop Group (LSE:GAW) has a ROC % of 93.58% as of Nov. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Games Workshop Group and its competitors.
Is Games Workshop Group's ROC % too high?
Games Workshop Group's current ROC % is 93.58%. The Travel & Leisure industry median ROC % is 3.76. Games Workshop Group's value of 93.58% is 2388.8% above this industry median. Overall, Games Workshop Group has a GF Score™ of 95/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Games Workshop Group's ROC % compare to AS and HAS?
Games Workshop Group's ROC % of 93.58% can be compared against companies in the Travel & Leisure industry. The industry median ROC % is 3.76. Games Workshop Group's value of 93.58% is 2388.8% 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 Travel & Leisure company?
The median ROC % among Travel & Leisure companies is 3.76, based on 834 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. Games Workshop Group's current ROC % of 93.58% is 2388.8% 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 Games Workshop Group and its competitors. For the Travel & Leisure industry, the median ROC % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Games Workshop Group's current ROC % is 93.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Games Workshop Group stock overvalued right now?
Based on GuruFocus' analysis, Games Workshop Group (LSE:GAW) is currently considered Significantly Overvalued. The stock's GF Value™ is £147.23, compared to a current price of £217.00 — trading 47.4% above its estimated fair value. The current ROC % is 93.58% and 2388.8% above the Travel & Leisure industry median of 3.76. Games Workshop Group's overall GF Score™ is 95/100 with 5 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 Games Workshop Group (LSE:GAW), the current ROC % is 93.58% as of Nov. 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 Games Workshop Group (LSE:GAW) Overvalued in 2026?
Based on GuruFocus' analysis, Games Workshop Group stock appears to be overvalued.
The current stock price of £217.00 is trading 47.4% above its estimated GF Value™ of £147.23.
GuruFocus considers Games Workshop Group to be Significantly Overvalued.
Key valuation signals for LSE:GAW:
ROC %: 93.58%
GF Value™: £147.23 vs. price of £217.00 (47.4% above fair value)
Industry Position: 2388.8% above the Travel & Leisure median
No single metric tells the full story. See the LSE:GAW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Games Workshop Group PLC designs, manufactures and sells fantasy miniatures and games related products. It carries the manufacturing activity in the UK and sells the same in the different region of the countries such as Continental Europe, North America, and Asia Pacific. It operates through two segments Core and Licensing . The core segment includes all revenue and expenditure relating to the design, manufacture and sales of their fantasy miniatures and related products. The licensing segment includes all revenue and expenditure relating to licences granted to external partners. The company generates majority of its revenue from the core segment.
95GF Score
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