ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. SoftTech Engineers's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 5.46%.
As of today (2026-06-28), SoftTech Engineers's WACC % is 16.82%. SoftTech Engineers's ROC % is 3.64% (calculated using TTM income statement data).
SoftTech Engineers earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, SoftTech Engineers's WACC % is 16.82%. SoftTech Engineers's ROC % is 3.64% (calculated using TTM income statement data).
SoftTech Engineers 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.
SoftTech Engineers ROC % Related Terms
SoftTech Engineers ROC % Historical Data
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The historical data trend for SoftTech Engineers'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.
SoftTech Engineers (NSE:SOFTTECH) has a ROC % of 5.46% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on SoftTech Engineers and its competitors.
Is SoftTech Engineers' ROC % too high?
SoftTech Engineers' current ROC % is 5.46%. The Software industry median ROC % is 3.03. SoftTech Engineers' value of 5.46% is 80.2% above this industry median. Overall, SoftTech Engineers has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SoftTech Engineers' ROC % compare to CRM and SHOP?
SoftTech Engineers' ROC % of 5.46% can be compared against companies in the Software industry. The industry median ROC % is 3.03. SoftTech Engineers' value of 5.46% is 80.2% 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 Software company?
The median ROC % among Software companies is 3.03, based on 2,827 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. SoftTech Engineers's current ROC % of 5.46% is 80.2% 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 SoftTech Engineers and its competitors. For the Software industry, the median ROC % is 3.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SoftTech Engineers's current ROC % is 5.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SoftTech Engineers stock overvalued right now?
Based on GuruFocus' analysis, SoftTech Engineers (NSE:SOFTTECH) is currently considered Fairly Valued. The stock's GF Value™ is ₹465.34, compared to a current price of ₹440.00 — trading 5.4% below its estimated fair value. The current ROC % is 5.46% and 80.2% above the Software industry median of 3.03. SoftTech Engineers' overall GF Score™ is 85/100 with 6 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 SoftTech Engineers (NSE:SOFTTECH), the current ROC % is 5.46% 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 SoftTech Engineers (NSE:SOFTTECH) Overvalued in 2026?
Based on GuruFocus' analysis, SoftTech Engineers stock appears to be undervalued.
The current stock price of ₹440.00 is trading 5.4% below its estimated GF Value™ of ₹465.34.
GuruFocus considers SoftTech Engineers to be Fairly Valued.
Key valuation signals for NSE:SOFTTECH:
ROC %: 5.46%
GF Value™: ₹465.34 vs. price of ₹440.00 (5.4% below fair value)
Industry Position: 80.2% above the Software median
No single metric tells the full story. See the NSE:SOFTTECH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SoftTech Engineers Ltd is an information technology and software development services organisation, delivering end-to-end solutions in the Architectural-Engineering-Construction (AEC) space, catering to government bodies, municipalities, property developers, municipal corporations, investors, real estate companies, contractors, architects, and consultants. The company offers Building Information Modeling (BIM) services, Geographic Information Systems, and AI services engineered specifically for the construction and infrastructure industry. In addition, it offers a suite of software products, including CivitPLAN, CivitSustain, CivitBuild, CivitInfra, and CivitPermit to its clients. Geographically, the company derives a majority of its revenue from its business in India.
85GF Score
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