VLRMF (Valereum) ROC %: -37.51% (As of Jun. 2025)

What is Valereum ROC %?

Valereum VLRMF ROC % is -37.51% as of Jun. 2025. The stock has 2 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Valereum's annualized return on capital (ROC %) for the quarter that ended in Jun. 2025 was -37.51%.

As of today (2026-06-24), Valereum's WACC % is 12.42%. Valereum's ROC % is -36.81% (calculated using TTM income statement data). Valereum earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Valereum (OTCPK:VLRMF) 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, Valereum's WACC % is 12.42%. Valereum's ROC % is -36.81% (calculated using TTM income statement data). Valereum 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.

Valereum ROC % Related Terms

Valereum ROC % Historical Data

* Premium members only.

The historical data trend for Valereum'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.

Valereum ROC % Chart

Valereum Annual Data

Trend

Dec13

Dec14

Dec15

Mar18

Mar19

Mar20

Dec21

Dec22

Dec23

Dec24

ROC %

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-150.38

-303.62

-235.58

-78.64

-43.07

Valereum Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25
ROC %	Get a 7-Day Free Trial															-63.68	-89.78	-24.33	-46.19	-37.51

Valereum ROC % Calculation

Valereum's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	-2.135 * ( 1 - 0% )	/	( (3.267	+	6.646)	/ 2 )
=	-2.135	/	4.9565
=	-43.07 %

where

	Invested Capital		(A: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	3.084	-	2.313	-	( 0.041	-	max(0, 2.639	-	0.143	+	0.041	))
=	3.267

	Invested Capital		(A: Dec. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	6.384	-	2.2	-	( 0.024	-	max(0, 2.625	-	0.163	+	0.024	))
=	6.646

Valereum's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2025 is calculated as:

	ROC % (Q: Jun. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2024 )	+	Invested Capital (Q: Jun. 2025 ))	/ count )
=	-4.656 * ( 1 - 0% )	/	( (6.646	+	18.182)	/ 2 )
=	-4.656	/	12.414
=	-37.51 %

where

	Invested Capital		(Q: Dec. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	6.384	-	2.2	-	( 0.024	-	max(0, 2.625	-	0.163	+	0.024	))
=	6.646

	Invested Capital		(Q: Jun. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	13.791	-	3.246	-	( 0.019	-	max(0, 7.984	-	0.347	+	0.019	))
=	18.182

Note: The Operating Income data used here is two times the semi-annual (Jun. 2025) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -37.51% mean?

Valereum (VLRMF) has a ROC % of -37.51% as of Jun. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Valereum and its competitors.

Is Valereum's ROC % too high?

Valereum's current ROC % is -37.51%.

How does Valereum's ROC % compare to MSFT and ORCL?

Valereum's ROC % of -37.51% can be compared against companies in the Software industry. The industry median ROC % is 3.12. 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 Software company?

The median ROC % among Software companies is 3.12, based on 2,828 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 Valereum and its competitors. For the Software industry, the median ROC % is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Valereum's current ROC % is -37.51%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Valereum stock overvalued right now?

Valereum (VLRMF) has a current ROC % of -37.51%. The current ROC % is -37.51%. 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 Valereum (VLRMF), the current ROC % is -37.51% as of Jun. 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.

Valereum Business Description

Industry Technology Software

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Other Exchanges VLRM:UK 6TJ:Germany

Address 6 Bayside Road, 6.20 World Trade Center, Gibraltar, GIB, GX11 1AA

Website https://www.vlrm.com

Valereum PLC is a fintech company seeking to unlock capital & create value in tokenized digital markets, both as a technology provider and as a marketplace operator. It aims to be in developing tokenized digital markets sector.