ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Paramount Skydance's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 4.99%.
As of today (2026-06-25), Paramount Skydance's WACC % is 6.51%. Paramount Skydance's ROC % is 2.68% (calculated using TTM income statement data).
Paramount Skydance earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Paramount Skydance (MEX:PSKY) 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, Paramount Skydance's WACC % is 6.51%. Paramount Skydance's ROC % is 2.68% (calculated using TTM income statement data).
Paramount Skydance 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.
Paramount Skydance ROC % Related Terms
Paramount Skydance ROC % Historical Data
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The historical data trend for Paramount Skydance'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.
Paramount Skydance (MEX:PSKY) has a ROC % of 4.99% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Paramount Skydance and its competitors.
Is Paramount Skydance's ROC % too high?
Paramount Skydance's current ROC % is 4.99%. The Media - Diversified industry median ROC % is 1.41. Paramount Skydance's value of 4.99% is 255.2% above this industry median. Overall, Paramount Skydance has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Paramount Skydance's ROC % compare to SIRI and LLYVA?
Paramount Skydance's ROC % of 4.99% can be compared against companies in the Media - Diversified industry. The industry median ROC % is 1.41. Paramount Skydance's value of 4.99% is 255.2% 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 Media - Diversified company?
The median ROC % among Media - Diversified companies is 1.41, based on 1,016 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. Paramount Skydance's current ROC % of 4.99% is 255.2% 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 Paramount Skydance and its competitors. For the Media - Diversified industry, the median ROC % is 1.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paramount Skydance's current ROC % is 4.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paramount Skydance stock overvalued right now?
Based on GuruFocus' analysis, Paramount Skydance (MEX:PSKY) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN98.26, compared to a current price of MXN170.00 — trading 73% above its estimated fair value. The current ROC % is 4.99% and 255.2% above the Media - Diversified industry median of 1.41. Paramount Skydance's overall GF Score™ is 52/100 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 Paramount Skydance (MEX:PSKY), the current ROC % is 4.99% 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 Paramount Skydance (MEX:PSKY) Overvalued in 2026?
Based on GuruFocus' analysis, Paramount Skydance stock appears to be overvalued.
The current stock price of MXN170.00 is trading 73% above its estimated GF Value™ of MXN98.26.
GuruFocus considers Paramount Skydance to be Significantly Overvalued.
Key valuation signals for MEX:PSKY:
ROC %: 4.99%
GF Value™: MXN98.26 vs. price of MXN170.00 (73% above fair value)
Industry Position: 255.2% above the Media - Diversified median
No single metric tells the full story. See the MEX:PSKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paramount Skydance operates in three global business segments: TV media, filmed entertainment, and direct to consumer. The TV media business includes television production studios and various broadcast and cable networks, including CBS, 15 owned CBS affiliates, Paramount, Nickelodeon, MTV, BET, and VH1. Filmed entertainment consists of multiple film studios, most importantly Paramount Pictures. The film studios produce and distribute movies that they license to movie theaters and other media outlets. Direct to consumer includes the Paramount+, Pluto TV, and BET+ streaming services. Much of the content on Paramount's streaming platforms is created by the production studios housed within the firm's other two business segments.
52GF Score
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