ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Kongsberg Gruppen ASA's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.53%.
As of today (2026-06-24), Kongsberg Gruppen ASA's WACC % is 12.44%. Kongsberg Gruppen ASA's ROC % is 8.13% (calculated using TTM income statement data).
Kongsberg Gruppen ASA earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Kongsberg Gruppen ASA (OSL:KOG) 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, Kongsberg Gruppen ASA's WACC % is 12.44%. Kongsberg Gruppen ASA's ROC % is 8.13% (calculated using TTM income statement data).
Kongsberg Gruppen ASA 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.
* 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.
Kongsberg Gruppen ASA (OSL:KOG) has a ROC % of 6.53% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Kongsberg Gruppen ASA and its competitors.
Is Kongsberg Gruppen ASA's ROC % too high?
Kongsberg Gruppen ASA's current ROC % is 6.53%. The Aerospace & Defense industry median ROC % is 4.45. Kongsberg Gruppen ASA's value of 6.53% is 46.7% above this industry median. Overall, Kongsberg Gruppen ASA has a GF Score™ of 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kongsberg Gruppen ASA's ROC % compare to GE and RTX?
Kongsberg Gruppen ASA's ROC % of 6.53% can be compared against companies in the Aerospace & Defense industry. The industry median ROC % is 4.45. Kongsberg Gruppen ASA's value of 6.53% is 46.7% 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 an Aerospace & Defense company?
The median ROC % among Aerospace & Defense companies is 4.45, based on 351 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. Kongsberg Gruppen ASA's current ROC % of 6.53% is 46.7% 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 Kongsberg Gruppen ASA and its competitors. For the Aerospace & Defense industry, the median ROC % is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kongsberg Gruppen ASA's current ROC % is 6.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kongsberg Gruppen ASA stock overvalued right now?
Based on GuruFocus' analysis, Kongsberg Gruppen ASA (OSL:KOG) is currently considered Significantly Overvalued. The stock's GF Value™ is kr191.39, compared to a current price of kr301.40 — trading 57.5% above its estimated fair value. The current ROC % is 6.53% and 46.7% above the Aerospace & Defense industry median of 4.45. Kongsberg Gruppen ASA's overall GF Score™ is 91/100 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 Kongsberg Gruppen ASA (OSL:KOG), the current ROC % is 6.53% 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 Kongsberg Gruppen ASA (OSL:KOG) Overvalued in 2026?
Based on GuruFocus' analysis, Kongsberg Gruppen ASA stock appears to be overvalued.
The current stock price of kr301.40 is trading 57.5% above its estimated GF Value™ of kr191.39.
GuruFocus considers Kongsberg Gruppen ASA to be Significantly Overvalued.
Key valuation signals for OSL:KOG:
ROC %: 6.53%
GF Value™: kr191.39 vs. price of kr301.40 (57.5% above fair value)
Industry Position: 46.7% above the Aerospace & Defense median
No single metric tells the full story. See the OSL:KOG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kongsberg Gruppen is an international technology company focused on defense, aerospace, and advanced sensing and surveillance solutions following the spinoff of its maritime business. The group's activities are centered on Kongsberg Defence & Aerospace and Kongsberg Discovery, providing defense systems, missiles, air defense, and subsea and monitoring technologies.
91GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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