ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. KHFM Hospitality And Facility Management Services's annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was 7.16%.
KHFM Hospitality And Facility Management Services (NSE:KHFM) 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, KHFM Hospitality And Facility Management Services's WACC % is 11.61%. KHFM Hospitality And Facility Management Services's ROC % is 7.43% (calculated using TTM income statement data).
KHFM Hospitality And Facility Management Services 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.
KHFM Hospitality And Facility Management Services ROC % Related Terms
KHFM Hospitality And Facility Management Services ROC % Historical Data
* 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.
KHFM Hospitality And Facility Management Services ROC % Chart
KHFM Hospitality And Facility Management Services Annual Data
Note:
The Operating Income data used here is two times the semi-annual (Sep. 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.
KHFM Hospitality And Facility Management Services (NSE:KHFM) has a ROC % of 7.16% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on KHFM Hospitality And Facility Management Services and its competitors.
Is KHFM Hospitality And Facility Management Services' ROC % too high?
KHFM Hospitality And Facility Management Services' current ROC % is 7.16%. The Business Services industry median ROC % is 5.99. KHFM Hospitality And Facility Management Services' value of 7.16% is 19.5% above this industry median. Overall, KHFM Hospitality And Facility Management Services has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does KHFM Hospitality And Facility Management Services' ROC % compare to CTAS and CPRT?
KHFM Hospitality And Facility Management Services' ROC % of 7.16% can be compared against companies in the Business Services industry. The industry median ROC % is 5.99. KHFM Hospitality And Facility Management Services' value of 7.16% is 19.5% 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 5.99, 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. KHFM Hospitality And Facility Management Services's current ROC % of 7.16% is 19.5% 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 KHFM Hospitality And Facility Management Services and its competitors. For the Business Services industry, the median ROC % is 5.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KHFM Hospitality And Facility Management Services's current ROC % is 7.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KHFM Hospitality And Facility Management Services stock overvalued right now?
Based on GuruFocus' analysis, KHFM Hospitality And Facility Management Services (NSE:KHFM) is currently considered Fairly Valued. The stock's GF Value™ is ₹58.94, compared to a current price of ₹57.80 — trading 1.9% below its estimated fair value. The current ROC % is 7.16% and 19.5% above the Business Services industry median of 5.99. KHFM Hospitality And Facility Management Services' overall GF Score™ is 67/100 with 4 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 KHFM Hospitality And Facility Management Services (NSE:KHFM), the current ROC % is 7.16% as of Sep. 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 KHFM Hospitality And Facility Management Services (NSE:KHFM) Overvalued in 2026?
Based on GuruFocus' analysis, KHFM Hospitality And Facility Management Services stock appears to be undervalued.
The current stock price of ₹57.80 is trading 1.9% below its estimated GF Value™ of ₹58.94.
GuruFocus considers KHFM Hospitality And Facility Management Services to be Fairly Valued.
Key valuation signals for NSE:KHFM:
ROC %: 7.16%
GF Value™: ₹58.94 vs. price of ₹57.80 (1.9% below fair value)
Industry Position: 19.5% above the Business Services median
No single metric tells the full story. See the NSE:KHFM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KHFM Hospitality And Facility Management Services Business Description
KHFM Hospitality And Facility Management Services Ltd is an integrated business services provider focused on providing integrated hospitality and facility management services. Its services include housekeeping, garden development and maintenance, electric maintenance, plumbing, pest control, swimming pool attendant, lift attendant, pump operator, fire fighting, accounting, security services, caretakers, and various staff for star hotels, among others. The company has identified its business segment as Hospitality & Facility Management Services. Geographically, the activities are carried out in India.
67GF Score
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