ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Korn Ferry's annualized return on capital (ROC %) for the quarter that ended in Jan. 2026 was 11.37%.
As of today (2026-06-27), Korn Ferry's WACC % is 10.44%. Korn Ferry's ROC % is 12.28% (calculated using TTM income statement data).
Korn Ferry 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.
Korn Ferry (MEX:KFY) 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, Korn Ferry's WACC % is 10.44%. Korn Ferry's ROC % is 12.28% (calculated using TTM income statement data).
Korn Ferry 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.
Korn Ferry ROC % Related Terms
Korn Ferry ROC % Historical Data
* Premium members only.
The historical data trend for Korn Ferry'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 four times the quarterly (Jan. 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.
Korn Ferry (MEX:KFY) has a ROC % of 11.37% as of Jan. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Korn Ferry and its competitors.
Is Korn Ferry's ROC % too high?
Korn Ferry's current ROC % is 11.37%. The Business Services industry median ROC % is 5.93. Korn Ferry's value of 11.37% is 91.7% above this industry median. Overall, Korn Ferry has a GF Score™ of 91/100, reflecting its overall financial health beyond just this single metric.
How does Korn Ferry's ROC % compare to RHI and TNET?
Korn Ferry's ROC % of 11.37% can be compared against companies in the Business Services industry. The industry median ROC % is 5.93. Korn Ferry's value of 11.37% is 91.7% 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 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. Korn Ferry's current ROC % of 11.37% is 91.7% 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 Korn Ferry 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. Korn Ferry's current ROC % is 11.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Korn Ferry stock overvalued right now?
Korn Ferry (MEX:KFY) has a current ROC % of 11.37%. The stock's GF Value™ is MXN1,130.11, compared to a current price of MXN1,195.00 — trading 5.7% above its estimated fair value. The current ROC % is 11.37% and 91.7% above the Business Services industry median of 5.93. Korn Ferry's overall GF Score™ is 91/100 with 3 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 Korn Ferry (MEX:KFY), the current ROC % is 11.37% as of Jan. 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 Korn Ferry (MEX:KFY) Overvalued in 2026?
Based on GuruFocus' analysis, Korn Ferry stock appears to be overvalued.
The current stock price of MXN1,195.00 is trading 5.7% above its estimated GF Value™ of MXN1,130.11.
Key valuation signals for MEX:KFY:
ROC %: 11.37%
GF Value™: MXN1,130.11 vs. price of MXN1,195.00 (5.7% above fair value)
Industry Position: 91.7% above the Business Services median
No single metric tells the full story. See the MEX:KFY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Korn Ferry is a consulting firm that powers performance. The Company helps unlock the potential in people and unleash transformation across organizations synchronizing, operations, and talent to accelerate performance, fuel growth, and inspire a legacy of change. The company's segment includes Consulting, Digital, Executive Search North America, Executive Search EMEA, Executive Search APAC, Executive Search Latin America, Professional Search & Interim and RPO. The company generates the majority of its revenue from the Executive Search segment and Consulting segment. The Executive search segment helps organizations recruit board-level, chief executive, and other C-suite/senior executive and general management talent to deliver lasting impact.
91GF Score
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