ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Pebble Beach Systems Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 21.02%.
As of today (2026-06-26), Pebble Beach Systems Group's WACC % is 11.08%. Pebble Beach Systems Group's ROC % is 21.74% (calculated using TTM income statement data).
Pebble Beach Systems 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.
Pebble Beach Systems Group (LSE:PEB) 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, Pebble Beach Systems Group's WACC % is 11.08%. Pebble Beach Systems Group's ROC % is 21.74% (calculated using TTM income statement data).
Pebble Beach Systems 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 (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.
Pebble Beach Systems Group (LSE:PEB) has a ROC % of 21.02% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Pebble Beach Systems Group and its competitors.
Is Pebble Beach Systems Group's ROC % too high?
Pebble Beach Systems Group's current ROC % is 21.02%. The Hardware industry median ROC % is 4.12. Pebble Beach Systems Group's value of 21.02% is 410.8% above this industry median. Overall, Pebble Beach Systems Group has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pebble Beach Systems Group's ROC % compare to CSCO and CIEN?
Pebble Beach Systems Group's ROC % of 21.02% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. Pebble Beach Systems Group's value of 21.02% is 410.8% 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 Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,444 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. Pebble Beach Systems Group's current ROC % of 21.02% is 410.8% 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 Pebble Beach Systems Group and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pebble Beach Systems Group's current ROC % is 21.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pebble Beach Systems Group stock overvalued right now?
Based on GuruFocus' analysis, Pebble Beach Systems Group (LSE:PEB) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.09, compared to a current price of £0.25 — trading 177.8% above its estimated fair value. The current ROC % is 21.02% and 410.8% above the Hardware industry median of 4.12. Pebble Beach Systems Group's overall GF Score™ is 50/100 with 6 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 Pebble Beach Systems Group (LSE:PEB), the current ROC % is 21.02% 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 Pebble Beach Systems Group (LSE:PEB) Overvalued in 2026?
Based on GuruFocus' analysis, Pebble Beach Systems Group stock appears to be overvalued.
The current stock price of £0.25 is trading 177.8% above its estimated GF Value™ of £0.09.
GuruFocus considers Pebble Beach Systems Group to be Significantly Overvalued.
Key valuation signals for LSE:PEB:
ROC %: 21.02%
GF Value™: £0.09 vs. price of £0.25 (177.8% above fair value)
Industry Position: 410.8% above the Hardware median
No single metric tells the full story. See the LSE:PEB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pebble Beach Systems Group PLC is a software business specialising in playout automation and content management solutions for the broadcast and streaming markets. It specialises in designing, delivering, and supporting workflow automation systems for media broadcasters and streamers. Its primary product is playout automation software, which is used by television channels, streaming services, and other media companies to manage the sequencing of programmes, advertisements, promotions, graphics, and channel branding. It also provides integrated channel solutions, which combine content storage, playout, graphics, and monitoring into a single unified platform. Its customers include CNBC, Fox News, IMG, and TV Globo. It operates in Europe, the Middle East and Africa, the Americas, and APAC.
50GF Score
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