ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Public Policy Holding Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -3.38%.
As of today (2026-06-26), Public Policy Holding Co's WACC % is 5.93%. Public Policy Holding Co's ROC % is -8.53% (calculated using TTM income statement data).
Public Policy Holding Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Public Policy Holding Co (LSE:PPHC) 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, Public Policy Holding Co's WACC % is 5.93%. Public Policy Holding Co's ROC % is -8.53% (calculated using TTM income statement data).
Public Policy Holding Co 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.
* 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.
Public Policy Holding Co (LSE:PPHC) has a ROC % of -3.38% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Public Policy Holding Co and its competitors.
Is Public Policy Holding Co's ROC % too high?
Public Policy Holding Co's current ROC % is -3.38%. Overall, Public Policy Holding Co has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Public Policy Holding Co's ROC % compare to VRSK and EFX?
Public Policy Holding Co's ROC % of -3.38% can be compared against companies in the Business Services industry. The industry median ROC % is 5.93. 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 Business Services company?
The median ROC % among Business Services companies is 5.93, based on 1,075 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 Public Policy Holding Co and its competitors. For the Business Services industry, the median ROC % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Public Policy Holding Co's current ROC % is -3.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Public Policy Holding Co stock overvalued right now?
Based on GuruFocus' analysis, Public Policy Holding Co (LSE:PPHC) is currently considered Possible Value Trap. The stock's GF Value™ is £9.97, compared to a current price of £6.05 — trading 39.3% below its estimated fair value. The current ROC % is -3.38%. Public Policy Holding Co's overall GF Score™ is 70/100 with 2 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 Public Policy Holding Co (LSE:PPHC), the current ROC % is -3.38% 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 Public Policy Holding Co (LSE:PPHC) Overvalued in 2026?
Based on GuruFocus' analysis, Public Policy Holding Co stock appears to be undervalued.
The current stock price of £6.05 is trading 39.3% below its estimated GF Value™ of £9.97.
GuruFocus considers Public Policy Holding Co to be Possible Value Trap.
Key valuation signals for LSE:PPHC:
ROC %: -3.38%
GF Value™: £9.97 vs. price of £6.05 (39.3% below fair value)
No single metric tells the full story. See the LSE:PPHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Public Policy Holding Co Inc operates as a advisory firm. The company also operates a portfolio of independent firms that offer public affairs, crisis management, lobbying, and advocacy services on behalf of the corporate, trade association, and non-profit client organisations. Its business comprises of three reporting segments - Government Relations Consulting, Corporate Communications & Public Affairs Consulting and Compliance and Insights Services.
70GF Score
Get the complete analysis for LSE:PPHC
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:PPHC has been successfully added to your 
