ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Tongcheng Travel Holdings's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 11.70%.
As of today (2026-07-08), Tongcheng Travel Holdings's WACC % is 9.68%. Tongcheng Travel Holdings's ROC % is 11.63% (calculated using TTM income statement data).
Tongcheng Travel Holdings 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.
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, Tongcheng Travel Holdings's WACC % is 9.68%. Tongcheng Travel Holdings's ROC % is 11.63% (calculated using TTM income statement data).
Tongcheng Travel Holdings 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.
Tongcheng Travel Holdings (STU:TEM) has a ROC % of 11.70% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Tongcheng Travel Holdings and its competitors.
Is Tongcheng Travel Holdings' ROC % too high?
Tongcheng Travel Holdings' current ROC % is 11.70%. The Travel & Leisure industry median ROC % is 3.77. Tongcheng Travel Holdings' value of 11.70% is 210.8% above this industry median. Overall, Tongcheng Travel Holdings has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tongcheng Travel Holdings' ROC % compare to BKNG and ABNB?
Tongcheng Travel Holdings' ROC % of 11.70% can be compared against companies in the Travel & Leisure industry. The industry median ROC % is 3.77. Tongcheng Travel Holdings' value of 11.70% is 210.8% 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 Travel & Leisure company?
The median ROC % among Travel & Leisure companies is 3.77, based on 830 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. Tongcheng Travel Holdings's current ROC % of 11.70% is 210.8% 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 Tongcheng Travel Holdings and its competitors. For the Travel & Leisure industry, the median ROC % is 3.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tongcheng Travel Holdings's current ROC % is 11.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongcheng Travel Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tongcheng Travel Holdings (STU:TEM) is currently considered Significantly Undervalued. The stock's GF Value™ is €2.63, compared to a current price of €1.35 — trading 48.7% below its estimated fair value. The current ROC % is 11.70% and 210.8% above the Travel & Leisure industry median of 3.77. Tongcheng Travel Holdings' overall GF Score™ is 71/100 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 Tongcheng Travel Holdings (STU:TEM), the current ROC % is 11.70% 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 Tongcheng Travel Holdings (STU:TEM) Overvalued in 2026?
Based on GuruFocus' analysis, Tongcheng Travel Holdings stock appears to be undervalued.
The current stock price of €1.35 is trading 48.7% below its estimated GF Value™ of €2.63.
GuruFocus considers Tongcheng Travel Holdings to be Significantly Undervalued.
Key valuation signals for STU:TEM:
ROC %: 11.70%
GF Value™: €2.63 vs. price of €1.35 (48.7% below fair value)
Industry Position: 210.8% above the Travel & Leisure median
No single metric tells the full story. See the STU:TEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tongcheng Travel is an online travel agency platform that provides booking services for hotel and ticketing in China. It generated 84% of its revenue from accommodation reservations and transportation ticketing in 2023. The rest came from advertising and in-house software sales. The platform provides both online and offline services in the form of call centers and travel kiosks. Tongcheng Travel was formed from the merger of Tongcheng Network and eLong in 2018. It is currently 21.38% owned by Tencent and 20.86% by Trip.com. Tongcheng targets lower-tier cities and as of 2021, 86.7% of its users are from non-first-tier cities in China and 61.7% of new paying users on Weixin were from Tier 3 or below cities in China. The company competes with Trip.com, Alibaba's Fliggy, and Meituan.
71GF Score
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