ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Popular Vehicles and Services's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 1.96%.
As of today (2026-06-26), Popular Vehicles and Services's WACC % is 10.15%. Popular Vehicles and Services's ROC % is 2.98% (calculated using TTM income statement data).
Popular Vehicles and Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Popular Vehicles and Services (NSE:PVSL) 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, Popular Vehicles and Services's WACC % is 10.15%. Popular Vehicles and Services's ROC % is 2.98% (calculated using TTM income statement data).
Popular Vehicles and 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.
Popular Vehicles and Services ROC % Related Terms
Popular Vehicles and 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.
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.
Popular Vehicles and Services (NSE:PVSL) has a ROC % of 1.96% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Popular Vehicles and Services and its competitors.
Is Popular Vehicles and Services' ROC % too high?
Popular Vehicles and Services' current ROC % is 1.96%. The Vehicles & Parts industry median ROC % is 5.07. Popular Vehicles and Services' value of 1.96% is 61.3% below this industry median. Overall, Popular Vehicles and Services has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Popular Vehicles and Services' ROC % compare to CVNA and PAG?
Popular Vehicles and Services' ROC % of 1.96% can be compared against companies in the Vehicles & Parts industry. The industry median ROC % is 5.07. Popular Vehicles and Services' value of 1.96% is 61.3% below 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 Vehicles & Parts company?
The median ROC % among Vehicles & Parts companies is 5.07, based on 1,316 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. Popular Vehicles and Services's current ROC % of 1.96% is 61.3% below 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 Popular Vehicles and Services and its competitors. For the Vehicles & Parts industry, the median ROC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Popular Vehicles and Services's current ROC % is 1.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Popular Vehicles and Services stock overvalued right now?
Popular Vehicles and Services (NSE:PVSL) has a current ROC % of 1.96%. The current ROC % is 1.96% and 61.3% below the Vehicles & Parts industry median of 5.07. Popular Vehicles and Services' overall GF Score™ is 30/100 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 Popular Vehicles and Services (NSE:PVSL), the current ROC % is 1.96% 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.
Popular Vehicles and Services Business Description
Popular Vehicles and Services Ltd is engaged in automobile dealerships in India. It caters to the complete life cycle of vehicle ownership, right from the sale of new vehicles, servicing and repairing vehicles, distributing spare parts and accessories, facilitating the sale and exchange of pre-owned vehicles, operating driving schools, and facilitating the sale of third-party financial and insurance products. The group has structured its business broadly into four verticals-Passenger cars (excluding luxury vehicles), Luxury vehicles, Commercial vehicles, and others. Others comprise spare parts retail sales - other than through the respective business segments and sale of electric vehicles - two-wheelers and three-wheelers. Key revenue is generated from the passenger cars segment.
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