ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Perdoceo Education's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 36.15%.
As of today (2026-06-27), Perdoceo Education's WACC % is 4.89%. Perdoceo Education's ROC % is 27.68% (calculated using TTM income statement data).
Perdoceo Education 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.
Perdoceo Education (MEX:PRDO) 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, Perdoceo Education's WACC % is 4.89%. Perdoceo Education's ROC % is 27.68% (calculated using TTM income statement data).
Perdoceo Education 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.
Perdoceo Education ROC % Related Terms
Perdoceo Education ROC % Historical Data
* Premium members only.
The historical data trend for Perdoceo Education'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 (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.
Perdoceo Education (MEX:PRDO) has a ROC % of 36.15% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Perdoceo Education and its competitors.
Is Perdoceo Education's ROC % too high?
Perdoceo Education's current ROC % is 36.15%. The Education industry median ROC % is 5.00. Perdoceo Education's value of 36.15% is 623% above this industry median. Overall, Perdoceo Education has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Perdoceo Education's ROC % compare to UTI and MH?
Perdoceo Education's ROC % of 36.15% can be compared against companies in the Education industry. The industry median ROC % is 5.00. Perdoceo Education's value of 36.15% is 623% 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 an Education company?
The median ROC % among Education companies is 5.00, based on 261 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. Perdoceo Education's current ROC % of 36.15% is 623% 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 Perdoceo Education and its competitors. For the Education industry, the median ROC % is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perdoceo Education's current ROC % is 36.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perdoceo Education stock overvalued right now?
Perdoceo Education (MEX:PRDO) has a current ROC % of 36.15%. The stock's GF Value™ is MXN523.70, compared to a current price of MXN555.00 — trading 6% above its estimated fair value. The current ROC % is 36.15% and 623% above the Education industry median of 5.00. Perdoceo Education's overall GF Score™ is 76/100 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 Perdoceo Education (MEX:PRDO), the current ROC % is 36.15% 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 Perdoceo Education (MEX:PRDO) Overvalued in 2026?
Based on GuruFocus' analysis, Perdoceo Education stock appears to be overvalued.
The current stock price of MXN555.00 is trading 6% above its estimated GF Value™ of MXN523.70.
Key valuation signals for MEX:PRDO:
ROC %: 36.15%
GF Value™: MXN523.70 vs. price of MXN555.00 (6% above fair value)
Industry Position: 623% above the Education median
No single metric tells the full story. See the MEX:PRDO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Perdoceo Education Corp is an American for-profit education company that focuses on quality postsecondary education online to a diverse student population, along with campus-based and blended learning programs. The company's important segments include the American InterContinental University, the University of St. Augustine for Health Sciences, and Colorado Technical University. These universities provide undergraduate, graduate, and doctoral degree programs focusing on business, technology, management, and social services, with the majority of the students enrolled in programs offered fully online. The majority of the its revenue comes from the Colorado Technical University segment.
76GF Score
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