ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Zee Entertainment Enterprises's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -5.70%.
As of today (2026-07-02), Zee Entertainment Enterprises's WACC % is 15.94%. Zee Entertainment Enterprises's ROC % is 1.30% (calculated using TTM income statement data).
Zee Entertainment Enterprises earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Zee Entertainment Enterprises (NSE:ZEEL) 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, Zee Entertainment Enterprises's WACC % is 15.94%. Zee Entertainment Enterprises's ROC % is 1.30% (calculated using TTM income statement data).
Zee Entertainment Enterprises 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.
Zee Entertainment Enterprises ROC % Related Terms
Zee Entertainment Enterprises 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.
Zee Entertainment Enterprises (NSE:ZEEL) has a ROC % of -5.70% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Zee Entertainment Enterprises and its competitors.
Is Zee Entertainment Enterprises' ROC % too high?
Zee Entertainment Enterprises' current ROC % is -5.70%. Overall, Zee Entertainment Enterprises has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zee Entertainment Enterprises' ROC % compare to NXST?
Zee Entertainment Enterprises' ROC % of -5.70% can be compared against companies in the Media - Diversified industry. The industry median ROC % is 1.39. 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 1.39, based on 1,008 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. 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 Zee Entertainment Enterprises and its competitors. For the Media - Diversified industry, the median ROC % is 1.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zee Entertainment Enterprises's current ROC % is -5.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zee Entertainment Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Zee Entertainment Enterprises (NSE:ZEEL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹126.62, compared to a current price of ₹108.31 — trading 14.5% below its estimated fair value. The current ROC % is -5.70%. Zee Entertainment Enterprises' overall GF Score™ is 82/100 with 8 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 Zee Entertainment Enterprises (NSE:ZEEL), the current ROC % is -5.70% 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 Zee Entertainment Enterprises (NSE:ZEEL) Overvalued in 2026?
Based on GuruFocus' analysis, Zee Entertainment Enterprises stock appears to be undervalued.
The current stock price of ₹108.31 is trading 14.5% below its estimated GF Value™ of ₹126.62.
GuruFocus considers Zee Entertainment Enterprises to be Modestly Undervalued.
Key valuation signals for NSE:ZEEL:
ROC %: -5.70%
GF Value™: ₹126.62 vs. price of ₹108.31 (14.5% below fair value)
No single metric tells the full story. See the NSE:ZEEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zee Entertainment Enterprises Business Description
Zee Entertainment Enterprises Ltd is a broadcasting television company that provides media and entertainment services. Zee generates revenue from advertisements, subscriptions, theatrical revenue, the sale of media content, transmission revenue, and commissions. The company controls a suite of television channels that broadcast in many different languages. Furthermore, Zee Entertainment produces and distributes feature films, develops digital online offerings, and produces and sells live entertainment events. It operates in a single segment, Content and Broadcasting. The company earns the vast majority of its revenue in India.
82GF Score
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