ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Cleanaway Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 6.01%.
As of today (2026-06-26), Cleanaway Co's WACC % is 4.91%. Cleanaway Co's ROC % is 7.92% (calculated using TTM income statement data).
Cleanaway 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.
Cleanaway Co (TPE:8422) 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, Cleanaway Co's WACC % is 4.91%. Cleanaway Co's ROC % is 7.92% (calculated using TTM income statement data).
Cleanaway 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.
Cleanaway Co ROC % Related Terms
Cleanaway Co ROC % Historical Data
* Premium members only.
The historical data trend for Cleanaway Co'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 (Dec. 2025) 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.
Cleanaway Co (TPE:8422) has a ROC % of 6.01% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Cleanaway Co and its competitors.
Is Cleanaway Co's ROC % too high?
Cleanaway Co's current ROC % is 6.01%. The Waste Management industry median ROC % is 3.53. Cleanaway Co's value of 6.01% is 70.3% above this industry median. Overall, Cleanaway Co has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cleanaway Co's ROC % compare to WM and RSG?
Cleanaway Co's ROC % of 6.01% can be compared against companies in the Waste Management industry. The industry median ROC % is 3.53. Cleanaway Co's value of 6.01% is 70.3% 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 Waste Management company?
The median ROC % among Waste Management companies is 3.53, based on 246 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. Cleanaway Co's current ROC % of 6.01% is 70.3% 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 Cleanaway Co and its competitors. For the Waste Management industry, the median ROC % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cleanaway Co's current ROC % is 6.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cleanaway Co stock overvalued right now?
Based on GuruFocus' analysis, Cleanaway Co (TPE:8422) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$16.54, compared to a current price of NT$28.25 — trading 70.8% above its estimated fair value. The current ROC % is 6.01% and 70.3% above the Waste Management industry median of 3.53. Cleanaway Co's overall GF Score™ is 81/100 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 Cleanaway Co (TPE:8422), the current ROC % is 6.01% as of Dec. 2025. 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 Cleanaway Co (TPE:8422) Overvalued in 2026?
Based on GuruFocus' analysis, Cleanaway Co stock appears to be overvalued.
The current stock price of NT$28.25 is trading 70.8% above its estimated GF Value™ of NT$16.54.
GuruFocus considers Cleanaway Co to be Significantly Overvalued.
Key valuation signals for TPE:8422:
ROC %: 6.01%
GF Value™: NT$16.54 vs. price of NT$28.25 (70.8% above fair value)
Industry Position: 70.3% above the Waste Management median
No single metric tells the full story. See the TPE:8422 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cleanaway Co Ltd is a Taiwan-based environmental protection and waste management company engaged in the treatment, recycling, transportation, and disposal of industrial and hazardous waste. The company operates through eight reportable segments: Solidification and Excavation, Landfill, Clean-up and Transport, China Operations, Investment, Paper Manufacturing, Power Sales, and Ready-Mixed Concrete. Its services include intermediate treatment of hazardous industrial waste, landfill operations, contaminated site remediation, waste removal and transportation, and environmental protection services. The company also manufactures paper products, sells renewable energy generated from solar power, and produces ready-mixed concrete.
81GF Score
Get the complete analysis for TPE:8422
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TPE:8422 has been successfully added to your 
