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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. TOW Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 0.00%.
As of today (2026-07-15), TOW Co's WACC % is 3.61%. TOW Co's ROC % is 22.89% (calculated using TTM income statement data).
TOW 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.
TOW Co (TSE:4767) 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, TOW Co's WACC % is 3.61%. TOW Co's ROC % is 22.89% (calculated using TTM income statement data).
TOW 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.
TOW Co ROC % Related Terms
TOW Co ROC % Historical Data
* Premium members only.
The historical data trend for TOW 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.
TOW Co (TSE:4767) has a ROC % of 0.00% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on TOW Co and its competitors.
Is TOW Co's ROC % too high?
TOW Co's current ROC % is 0.00%. Overall, TOW Co has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does TOW Co's ROC % compare to APP and OMC?
TOW Co's ROC % of 0.00% can be compared against companies in the Media - Diversified industry. The industry median ROC % is 1.39. 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 Media - Diversified company?
The median ROC % among Media - Diversified companies is 1.39, based on 1,007 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. 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 TOW Co and its competitors. For the Media - Diversified industry, the median ROC % is 1.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TOW Co's current ROC % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TOW Co stock overvalued right now?
Based on GuruFocus' analysis, TOW Co (TSE:4767) is currently considered Fairly Valued. The stock's GF Value™ is 円347.91, compared to a current price of 円335.00 — trading 3.7% below its estimated fair value. The current ROC % is 0.00%. TOW Co's overall GF Score™ is 76/100 with 1 warning sign 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 TOW Co (TSE:4767), the current ROC % is 0.00% 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 TOW Co (TSE:4767) Overvalued in 2026?
Based on GuruFocus' analysis, TOW Co stock appears to be undervalued.
The current stock price of 円335.00 is trading 3.7% below its estimated GF Value™ of 円347.91.
GuruFocus considers TOW Co to be Fairly Valued.
Key valuation signals for TSE:4767:
ROC %: 0.00%
GF Value™: 円347.91 vs. price of 円335.00 (3.7% below fair value)
No single metric tells the full story. See the TSE:4767 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TOW Co Ltd is a Japan-based company mainly engaged in the management, production, and planning of events. It also provides promotions and public relation services to the companies. The company has operations in Japan and overseas.
76GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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