ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Metro Brands's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 15.76%.
As of today (2026-07-04), Metro Brands's WACC % is 11.48%. Metro Brands's ROC % is 16.12% (calculated using TTM income statement data).
Metro Brands 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.
Metro Brands (NSE:METROBRAND) 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, Metro Brands's WACC % is 11.48%. Metro Brands's ROC % is 16.12% (calculated using TTM income statement data).
Metro Brands 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.
Metro Brands ROC % Related Terms
Metro Brands ROC % Historical Data
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The historical data trend for Metro Brands'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.
Metro Brands (NSE:METROBRAND) has a ROC % of 15.76% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Metro Brands and its competitors.
Is Metro Brands' ROC % too high?
Metro Brands' current ROC % is 15.76%. The Retail - Cyclical industry median ROC % is 4.38. Metro Brands' value of 15.76% is 259.8% above this industry median. Overall, Metro Brands has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Metro Brands' ROC % compare to TJX and ROST?
Metro Brands' ROC % of 15.76% can be compared against companies in the Retail - Cyclical industry. The industry median ROC % is 4.38. Metro Brands' value of 15.76% is 259.8% 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 Retail - Cyclical company?
The median ROC % among Retail - Cyclical companies is 4.38, based on 1,108 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. Metro Brands's current ROC % of 15.76% is 259.8% 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 Metro Brands and its competitors. For the Retail - Cyclical industry, the median ROC % is 4.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Metro Brands's current ROC % is 15.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Metro Brands stock overvalued right now?
Based on GuruFocus' analysis, Metro Brands (NSE:METROBRAND) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,449.42, compared to a current price of ₹1,037.90 — trading 28.4% below its estimated fair value. The current ROC % is 15.76% and 259.8% above the Retail - Cyclical industry median of 4.38. Metro Brands' overall GF Score™ is 91/100. 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 Metro Brands (NSE:METROBRAND), the current ROC % is 15.76% 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 Metro Brands (NSE:METROBRAND) Overvalued in 2026?
Based on GuruFocus' analysis, Metro Brands stock appears to be undervalued.
The current stock price of ₹1,037.90 is trading 28.4% below its estimated GF Value™ of ₹1,449.42.
GuruFocus considers Metro Brands to be Modestly Undervalued.
Key valuation signals for NSE:METROBRAND:
ROC %: 15.76%
GF Value™: ₹1,449.42 vs. price of ₹1,037.90 (28.4% below fair value)
Industry Position: 259.8% above the Retail - Cyclical median
No single metric tells the full story. See the NSE:METROBRAND stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Metro Brands Ltd is a specialty retailer of fashion footwear, bags, and accessories. It offers a wide range of branded products for the entire family, including items for men, women, unisex, and kids, suitable for every occasion, from casual to formal events. The company is also involved in manufacturing foot care and shoe care products through a joint venture. The various in-house and third-party brands in its product portfolio include Metro Shoes, Mochi Shoes, Clarks, Fila, New Era, Foot Locker, FitFlop, Walkway Shoes, Crocs, daVinchi, and Cheemo. The company's only business is the trading of fashion footwear, bags, and accessories, operating in the premium and economy categories.
91GF Score
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