ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Tokyu Fudosan Holdings's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 5.62%.
As of today (2026-06-27), Tokyu Fudosan Holdings's WACC % is 2.07%. Tokyu Fudosan Holdings's ROC % is 3.65% (calculated using TTM income statement data).
Tokyu Fudosan 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, Tokyu Fudosan Holdings's WACC % is 2.07%. Tokyu Fudosan Holdings's ROC % is 3.65% (calculated using TTM income statement data).
Tokyu Fudosan 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.
Tokyu Fudosan Holdings (TSE:3289) has a ROC % of 5.62% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Tokyu Fudosan Holdings and its competitors.
Is Tokyu Fudosan Holdings' ROC % too high?
Tokyu Fudosan Holdings' current ROC % is 5.62%. The Real Estate industry median ROC % is 2.19. Tokyu Fudosan Holdings' value of 5.62% is 156.6% above this industry median. Overall, Tokyu Fudosan Holdings has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tokyu Fudosan Holdings' ROC % compare to competitors?
Tokyu Fudosan Holdings' ROC % of 5.62% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.19. Tokyu Fudosan Holdings' value of 5.62% is 156.6% 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 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. Tokyu Fudosan Holdings's current ROC % of 5.62% is 156.6% 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 Tokyu Fudosan Holdings 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. Tokyu Fudosan Holdings's current ROC % is 5.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokyu Fudosan Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tokyu Fudosan Holdings (TSE:3289) is currently considered Fairly Valued. The stock's GF Value™ is 円1,165.42, compared to a current price of 円1,270.50 — trading 9% above its estimated fair value. The current ROC % is 5.62% and 156.6% above the Real Estate industry median of 2.19. Tokyu Fudosan Holdings' overall GF Score™ is 78/100 with 2 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 Tokyu Fudosan Holdings (TSE:3289), the current ROC % is 5.62% 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 Tokyu Fudosan Holdings (TSE:3289) Overvalued in 2026?
Based on GuruFocus' analysis, Tokyu Fudosan Holdings stock appears to be overvalued.
The current stock price of 円1,270.50 is trading 9% above its estimated GF Value™ of 円1,165.42.
GuruFocus considers Tokyu Fudosan Holdings to be Fairly Valued.
Key valuation signals for TSE:3289:
ROC %: 5.62%
GF Value™: 円1,165.42 vs. price of 円1,270.50 (9% above fair value)
Industry Position: 156.6% above the Real Estate median
No single metric tells the full story. See the TSE:3289 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokyu Fudosan Holdings Corp engages in the management and administration of a host of businesses. The business that compose Tokyu Fudosan Holdings operate in the following business segments: urban development, residential, wellness, innovation, property management, real estate agency, and tokyu hands. Altogether, the group develops, leases, and operates office buildings, commercial facilities, rental residences, and other properties. Tokyu's host of businesses also engage in management and operation of resort facilities, sports clubs, and senior housing. Businesses like the innovation segment serve as a complement and include overseas operations, custom homes, renovation, and landscaping.
78GF Score
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