ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Koei Tecmo Holdings Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 32.55%.
As of today (2026-06-27), Koei Tecmo Holdings Co's WACC % is 3.61%. Koei Tecmo Holdings Co's ROC % is 13.21% (calculated using TTM income statement data).
Koei Tecmo Holdings 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.
Koei Tecmo Holdings Co (TSE:3635) 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, Koei Tecmo Holdings Co's WACC % is 3.61%. Koei Tecmo Holdings Co's ROC % is 13.21% (calculated using TTM income statement data).
Koei Tecmo Holdings 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.
* 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.
Koei Tecmo Holdings Co (TSE:3635) has a ROC % of 32.55% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Koei Tecmo Holdings Co and its competitors.
Is Koei Tecmo Holdings Co's ROC % too high?
Koei Tecmo Holdings Co's current ROC % is 32.55%. The Interactive Media industry median ROC % is 1.88. Koei Tecmo Holdings Co's value of 32.55% is 1631.4% above this industry median. Overall, Koei Tecmo Holdings Co has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Koei Tecmo Holdings Co's ROC % compare to NTES and EA?
Koei Tecmo Holdings Co's ROC % of 32.55% can be compared against companies in the Interactive Media industry. The industry median ROC % is 1.88. Koei Tecmo Holdings Co's value of 32.55% is 1631.4% 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 an Interactive Media company?
The median ROC % among Interactive Media companies is 1.88, based on 560 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. Koei Tecmo Holdings Co's current ROC % of 32.55% is 1631.4% 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 Koei Tecmo Holdings Co and its competitors. For the Interactive Media industry, the median ROC % is 1.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Koei Tecmo Holdings Co's current ROC % is 32.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Koei Tecmo Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Koei Tecmo Holdings Co (TSE:3635) is currently considered Modestly Undervalued. The stock's GF Value™ is 円2,101.18, compared to a current price of 円1,507.50 — trading 28.3% below its estimated fair value. The current ROC % is 32.55% and 1631.4% above the Interactive Media industry median of 1.88. Koei Tecmo Holdings Co's overall GF Score™ is 79/100 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 Koei Tecmo Holdings Co (TSE:3635), the current ROC % is 32.55% 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 Koei Tecmo Holdings Co (TSE:3635) Overvalued in 2026?
Based on GuruFocus' analysis, Koei Tecmo Holdings Co stock appears to be undervalued.
The current stock price of 円1,507.50 is trading 28.3% below its estimated GF Value™ of 円2,101.18.
GuruFocus considers Koei Tecmo Holdings Co to be Modestly Undervalued.
Key valuation signals for TSE:3635:
ROC %: 32.55%
GF Value™: 円2,101.18 vs. price of 円1,507.50 (28.3% below fair value)
Industry Position: 1631.4% above the Interactive Media median
No single metric tells the full story. See the TSE:3635 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Koei Tecmo Holdings is a Japanese video game, amusement, and anime company created in 2009 by the merger of Koei and Tecmo, best known for their Nobunaga's Ambition, Romance of the Three Kingdoms, Nioh, and Atelier game franchises. The company also creates games based on third-party franchises, such as Nintendo's The Legend of Zelda and Fire Emblem, and Kodansha's Attack on Titan.
79GF Score
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