ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Shanghai Baosight Software Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 12.18%.
As of today (2026-07-04), Shanghai Baosight Software Co's WACC % is 9.87%. Shanghai Baosight Software Co's ROC % is 10.98% (calculated using TTM income statement data).
Shanghai Baosight Software Co 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.
Shanghai Baosight Software Co (SHSE:600845) 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, Shanghai Baosight Software Co's WACC % is 9.87%. Shanghai Baosight Software Co's ROC % is 10.98% (calculated using TTM income statement data).
Shanghai Baosight Software Co 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.
Shanghai Baosight Software Co ROC % Related Terms
Shanghai Baosight Software Co 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.
Shanghai Baosight Software Co (SHSE:600845) has a ROC % of 12.18% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Shanghai Baosight Software Co and its competitors.
Is Shanghai Baosight Software Co's ROC % too high?
Shanghai Baosight Software Co's current ROC % is 12.18%. The Software industry median ROC % is 3.05. Shanghai Baosight Software Co's value of 12.18% is 300% above this industry median. Overall, Shanghai Baosight Software Co has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Baosight Software Co's ROC % compare to UBER and SHOP?
Shanghai Baosight Software Co's ROC % of 12.18% can be compared against companies in the Software industry. The industry median ROC % is 3.05. Shanghai Baosight Software Co's value of 12.18% is 300% 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 Software company?
The median ROC % among Software companies is 3.05, based on 2,828 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. Shanghai Baosight Software Co's current ROC % of 12.18% is 300% 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 Shanghai Baosight Software Co and its competitors. For the Software industry, the median ROC % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Baosight Software Co's current ROC % is 12.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Baosight Software Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Baosight Software Co (SHSE:600845) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥25.01, compared to a current price of ¥18.25 — trading 27% below its estimated fair value. The current ROC % is 12.18% and 300% above the Software industry median of 3.05. Shanghai Baosight Software Co's overall GF Score™ is 81/100 with 5 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 Shanghai Baosight Software Co (SHSE:600845), the current ROC % is 12.18% 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 Shanghai Baosight Software Co (SHSE:600845) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Baosight Software Co stock appears to be undervalued.
The current stock price of ¥18.25 is trading 27% below its estimated GF Value™ of ¥25.01.
GuruFocus considers Shanghai Baosight Software Co to be Modestly Undervalued.
Key valuation signals for SHSE:600845:
ROC %: 12.18%
GF Value™: ¥25.01 vs. price of ¥18.25 (27% below fair value)
No single metric tells the full story. See the SHSE:600845 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Baosight Software Co Business Description
Shanghai Baosight Software Co Ltd is a Chinese software company that develops automation and software tools for various industries. The company operates through three segments: the Software Development and Engineering Services segment, the System Integration segment, and the Service Outsourcing segment. Its operations span across areas such as information technology, industrial automation, robotics, intelligent transportation, and information infrastructure. The company's offerings are mainly applied in sectors including steel, non-ferrous metals, chemicals, mining, new materials, renewable energy, metalworking, equipment manufacturing, urban transit systems, and infrastructure development.
81GF Score
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