ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Nova Klubburinn hf's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 5.78%.
As of today (2026-06-29), Nova Klubburinn hf's WACC % is 5.11%. Nova Klubburinn hf's ROC % is 6.31% (calculated using TTM income statement data).
Nova Klubburinn hf 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.
Nova Klubburinn hf (OISE:NOVA) 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, Nova Klubburinn hf's WACC % is 5.11%. Nova Klubburinn hf's ROC % is 6.31% (calculated using TTM income statement data).
Nova Klubburinn hf 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.
Nova Klubburinn hf ROC % Related Terms
Nova Klubburinn hf ROC % Historical Data
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The historical data trend for Nova Klubburinn hf'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 (Dec. 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.
Nova Klubburinn hf (OISE:NOVA) has a ROC % of 5.78% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nova Klubburinn hf and its competitors.
Is Nova Klubburinn hf's ROC % too high?
Nova Klubburinn hf's current ROC % is 5.78%. The Telecommunication Services industry median ROC % is 4.53. Nova Klubburinn hf's value of 5.78% is 27.7% above this industry median. Overall, Nova Klubburinn hf has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nova Klubburinn hf's ROC % compare to TMUS and VZ?
Nova Klubburinn hf's ROC % of 5.78% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.53. Nova Klubburinn hf's value of 5.78% is 27.7% 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 Telecommunication Services company?
The median ROC % among Telecommunication Services companies is 4.53, based on 364 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. Nova Klubburinn hf's current ROC % of 5.78% is 27.7% 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 Nova Klubburinn hf and its competitors. For the Telecommunication Services industry, the median ROC % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nova Klubburinn hf's current ROC % is 5.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nova Klubburinn hf stock overvalued right now?
Based on GuruFocus' analysis, Nova Klubburinn hf (OISE:NOVA) is currently considered Modestly Undervalued. The stock's GF Value™ is kr4.68, compared to a current price of kr3.48 — trading 25.6% below its estimated fair value. The current ROC % is 5.78% and 27.7% above the Telecommunication Services industry median of 4.53. Nova Klubburinn hf's overall GF Score™ is 70/100 with 1 warning sign 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 Nova Klubburinn hf (OISE:NOVA), the current ROC % is 5.78% as of Dec. 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 Nova Klubburinn hf (OISE:NOVA) Overvalued in 2026?
Based on GuruFocus' analysis, Nova Klubburinn hf stock appears to be undervalued.
The current stock price of kr3.48 is trading 25.6% below its estimated GF Value™ of kr4.68.
GuruFocus considers Nova Klubburinn hf to be Modestly Undervalued.
Key valuation signals for OISE:NOVA:
ROC %: 5.78%
GF Value™: kr4.68 vs. price of kr3.48 (25.6% below fair value)
Industry Position: 27.7% above the Telecommunication Services median
No single metric tells the full story. See the OISE:NOVA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nova Klubburinn hf a full-service telecommunications company operating in Iceland. Nova's customers are individuals and small and medium sized corporations. It operates through three key business areas: mobile network, Fixed network and Goods sold and Others.
70GF Score
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