ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Absolent Air Care Group AB's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.99%.
As of today (2026-07-08), Absolent Air Care Group AB's WACC % is 6.64%. Absolent Air Care Group AB's ROC % is 7.24% (calculated using TTM income statement data).
Absolent Air Care Group AB 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.
Absolent Air Care Group AB (OSTO:ABSO) 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, Absolent Air Care Group AB's WACC % is 6.64%. Absolent Air Care Group AB's ROC % is 7.24% (calculated using TTM income statement data).
Absolent Air Care Group AB 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.
* 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.
Absolent Air Care Group AB (OSTO:ABSO) has a ROC % of 7.99% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Absolent Air Care Group AB and its competitors.
Is Absolent Air Care Group AB's ROC % too high?
Absolent Air Care Group AB's current ROC % is 7.99%. The Industrial Products industry median ROC % is 5.19. Absolent Air Care Group AB's value of 7.99% is 53.9% above this industry median. Overall, Absolent Air Care Group AB has a GF Score™ of 94/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Absolent Air Care Group AB's ROC % compare to VLTO and ZWS?
Absolent Air Care Group AB's ROC % of 7.99% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.19. Absolent Air Care Group AB's value of 7.99% is 53.9% 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 Industrial Products company?
The median ROC % among Industrial Products companies is 5.19, based on 3,029 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. Absolent Air Care Group AB's current ROC % of 7.99% is 53.9% 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 Absolent Air Care Group AB and its competitors. For the Industrial Products industry, the median ROC % is 5.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Absolent Air Care Group AB's current ROC % is 7.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Absolent Air Care Group AB stock overvalued right now?
Based on GuruFocus' analysis, Absolent Air Care Group AB (OSTO:ABSO) is currently considered Significantly Undervalued. The stock's GF Value™ is kr269.51, compared to a current price of kr189.50 — trading 29.7% below its estimated fair value. The current ROC % is 7.99% and 53.9% above the Industrial Products industry median of 5.19. Absolent Air Care Group AB's overall GF Score™ is 94/100 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 Absolent Air Care Group AB (OSTO:ABSO), the current ROC % is 7.99% 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 Absolent Air Care Group AB (OSTO:ABSO) Overvalued in 2026?
Based on GuruFocus' analysis, Absolent Air Care Group AB stock appears to be undervalued.
The current stock price of kr189.50 is trading 29.7% below its estimated GF Value™ of kr269.51.
GuruFocus considers Absolent Air Care Group AB to be Significantly Undervalued.
Key valuation signals for OSTO:ABSO:
ROC %: 7.99%
GF Value™: kr269.51 vs. price of kr189.50 (29.7% below fair value)
Industry Position: 53.9% above the Industrial Products median
No single metric tells the full story. See the OSTO:ABSO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Absolent Air Care Group AB manufactures and sells filtration technology for industrial process air. The company has two segments: Industrial and Commercial Kitchen. The majority of its revenue is generated from the Industrial segment, which develops, manufactures, designs, sells, installs, and maintains filtration units. The products are used across a wide range of industries, including aerospace, automotive, defense, pharmaceutical, chemical, electronics, woodworking, and food processing. The Commercial Kitchen develops, designs, manufactures, sells, installs, and maintains commercial kitchen ventilation systems. It offers a broad portfolio of hoods, filtration technologies, and fire suppression systems to deliver the optimal kitchen ventilation solution.
94GF Score
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