ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Enthusiast Gaming Holdings's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.50%.
As of today (2026-07-01), Enthusiast Gaming Holdings's WACC % is 8.73%. Enthusiast Gaming Holdings's ROC % is 0.03% (calculated using TTM income statement data).
Enthusiast Gaming Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Enthusiast Gaming Holdings's WACC % is 8.73%. Enthusiast Gaming Holdings's ROC % is 0.03% (calculated using TTM income statement data).
Enthusiast Gaming Holdings 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 (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.
Enthusiast Gaming Holdings (TSX:EGLX) has a ROC % of 3.50% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Enthusiast Gaming Holdings and its competitors.
Is Enthusiast Gaming Holdings' ROC % too high?
Enthusiast Gaming Holdings' current ROC % is 3.50%. The Interactive Media industry median ROC % is 1.89. Enthusiast Gaming Holdings' value of 3.50% is 85.2% above this industry median.
How does Enthusiast Gaming Holdings' ROC % compare to GOOGL and META?
Enthusiast Gaming Holdings' ROC % of 3.50% can be compared against companies in the Interactive Media industry. The industry median ROC % is 1.89. Enthusiast Gaming Holdings' value of 3.50% is 85.2% 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 an Interactive Media company?
The median ROC % among Interactive Media companies is 1.89, based on 559 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. Enthusiast Gaming Holdings's current ROC % of 3.50% is 85.2% 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 Enthusiast Gaming Holdings and its competitors. For the Interactive Media industry, the median ROC % is 1.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Enthusiast Gaming Holdings's current ROC % is 3.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Enthusiast Gaming Holdings stock overvalued right now?
Based on GuruFocus' analysis, Enthusiast Gaming Holdings (TSX:EGLX) is currently considered Modestly Overvalued. The stock's GF Value™ is C$0.05, compared to a current price of C$0.06 — trading 20% above its estimated fair value. The current ROC % is 3.50% and 85.2% above the Interactive Media industry median of 1.89. 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 Enthusiast Gaming Holdings (TSX:EGLX), the current ROC % is 3.50% 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.
Enthusiast Gaming Holdings Inc operates in the digital media products and events industry segment. The company's principal business activities include media and content, events and subscriptions. Its digital media platform is centered around a portfolio of flagship video gaming related products, including owned and operated websites and casual games, through which the company derives its media and content revenue. The company's events business is comprised of Pocket Gamer Connects, a mobile gaming events series. Its subscription revenue includes owned and operated video gaming related products such as The Sims Resource. The company operates in four geographic locations, namely the USA, England and Wales, Canada and all other countries, with the maximum revenue derived from the USA.
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