ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Philippine Estates's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 0.05%.
As of today (2026-06-26), Philippine Estates's WACC % is 9.96%. Philippine Estates's ROC % is -1.71% (calculated using TTM income statement data).
Philippine Estates earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Philippine Estates (PHS:PHES) 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, Philippine Estates's WACC % is 9.96%. Philippine Estates's ROC % is -1.71% (calculated using TTM income statement data).
Philippine Estates 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.
Philippine Estates ROC % Related Terms
Philippine Estates ROC % Historical Data
* Premium members only.
The historical data trend for Philippine Estates'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.
Philippine Estates (PHS:PHES) has a ROC % of 0.05% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Philippine Estates and its competitors.
Is Philippine Estates' ROC % too high?
Philippine Estates' current ROC % is 0.05%. The Real Estate industry median ROC % is 2.19. Philippine Estates' value of 0.05% is 97.7% below this industry median. Overall, Philippine Estates has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Philippine Estates' ROC % compare to CBRE and BEKE?
Philippine Estates' ROC % of 0.05% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.19. Philippine Estates' value of 0.05% is 97.7% below 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 Real Estate company?
The median ROC % among Real Estate companies is 2.19, based on 1,757 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. Philippine Estates's current ROC % of 0.05% is 97.7% below 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 Philippine Estates and its competitors. For the Real Estate industry, the median ROC % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Philippine Estates's current ROC % is 0.05%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Philippine Estates stock overvalued right now?
Based on GuruFocus' analysis, Philippine Estates (PHS:PHES) is currently considered Significantly Overvalued. The stock's GF Value™ is ₱0.25, compared to a current price of ₱0.41 — trading 64% above its estimated fair value. The current ROC % is 0.05% and 97.7% below the Real Estate industry median of 2.19. Philippine Estates' overall GF Score™ is 46/100 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 Philippine Estates (PHS:PHES), the current ROC % is 0.05% 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 Philippine Estates (PHS:PHES) Overvalued in 2026?
Based on GuruFocus' analysis, Philippine Estates stock appears to be overvalued.
The current stock price of ₱0.41 is trading 64% above its estimated GF Value™ of ₱0.25.
GuruFocus considers Philippine Estates to be Significantly Overvalued.
Key valuation signals for PHS:PHES:
ROC %: 0.05%
GF Value™: ₱0.25 vs. price of ₱0.41 (64% above fair value)
Industry Position: 97.7% below the Real Estate median
No single metric tells the full story. See the PHS:PHES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Philippine Estates Corp is principally engaged in the business of holding and developing real estate or other properties for industrial, commercial, residential, leisure or sports purposes, and in pursuance thereof, to acquire by purchase, lease or otherwise, real estate and/or appurtenant properties and/or interest therein. The Group classifies business segments based on location of its real property projects as in the following geographical areas: a) Metro Manila: industrial park and condominium projects, b) Bulacan: subdivision, mixed use, c) Other Luzon Areas such as Cavite: subdivision development, d) Cebu: subdivision, mixed use and condominium projects, e) Iloilo: subdivision, mixed use and condominium projects, f) Davao: administrative office. Key revenue is derived from Iloilo.
46GF Score
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