ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Paramount Bed Holdings Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was 3.24%.
As of today (2026-06-28), Paramount Bed Holdings Co's WACC % is 8.36%. Paramount Bed Holdings Co's ROC % is 1.57% (calculated using TTM income statement data).
Paramount Bed Holdings Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Paramount Bed Holdings Co (TSE:7817) 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, Paramount Bed Holdings Co's WACC % is 8.36%. Paramount Bed Holdings Co's ROC % is 1.57% (calculated using TTM income statement data).
Paramount Bed Holdings Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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 (Sep. 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.
Paramount Bed Holdings Co (TSE:7817) has a ROC % of 3.24% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Paramount Bed Holdings Co and its competitors.
Is Paramount Bed Holdings Co's ROC % too high?
Paramount Bed Holdings Co's current ROC % is 3.24%. The Medical Devices & Instruments industry median ROC % is 1.26. Paramount Bed Holdings Co's value of 3.24% is 158.2% above this industry median. Overall, Paramount Bed Holdings Co has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Paramount Bed Holdings Co's ROC % compare to ISRG and BDX?
Paramount Bed Holdings Co's ROC % of 3.24% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROC % is 1.26. Paramount Bed Holdings Co's value of 3.24% is 158.2% 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 Medical Devices & Instruments company?
The median ROC % among Medical Devices & Instruments companies is 1.26, based on 848 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. Paramount Bed Holdings Co's current ROC % of 3.24% is 158.2% 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 Paramount Bed Holdings Co and its competitors. For the Medical Devices & Instruments industry, the median ROC % is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paramount Bed Holdings Co's current ROC % is 3.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paramount Bed Holdings Co stock overvalued right now?
Paramount Bed Holdings Co (TSE:7817) has a current ROC % of 3.24%. The stock's GF Value™ is 円2,907.43, compared to a current price of 円3,515.00 — trading 20.9% above its estimated fair value. The current ROC % is 3.24% and 158.2% above the Medical Devices & Instruments industry median of 1.26. Paramount Bed Holdings Co's overall GF Score™ is 69/100 with 6 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 Paramount Bed Holdings Co (TSE:7817), the current ROC % is 3.24% as of Sep. 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 Paramount Bed Holdings Co (TSE:7817) Overvalued in 2026?
Based on GuruFocus' analysis, Paramount Bed Holdings Co stock appears to be overvalued.
The current stock price of 円3,515.00 is trading 20.9% above its estimated GF Value™ of 円2,907.43.
Key valuation signals for TSE:7817:
ROC %: 3.24%
GF Value™: 円2,907.43 vs. price of 円3,515.00 (20.9% above fair value)
Industry Position: 158.2% above the Medical Devices & Instruments median
No single metric tells the full story. See the TSE:7817 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paramount Bed Holdings Co Ltd manufactures medical and nursing care products. Its acute care business sells products to intensive care units and other acute care facilities to relieve patient discomfort and prevent secondary infections. The long-term care business sells products used at long-term medical care facilities and nursing homes. The residential and nursing care business sells products to nurses and home-care helpers. The sleep and wellness business sells products to help customers sleep soundly, which include custom-made mattresses. The maintenance business provides bed maintenance and cleaning services. Paramount Bed generates the vast majority of its revenue in Japan.
69GF Score
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