ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Frequentis AG's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 23.45%.
As of today (2026-06-27), Frequentis AG's WACC % is 6.69%. Frequentis AG's ROC % is 11.13% (calculated using TTM income statement data).
Frequentis AG 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.
Frequentis AG (WBO:FQT) 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, Frequentis AG's WACC % is 6.69%. Frequentis AG's ROC % is 11.13% (calculated using TTM income statement data).
Frequentis AG 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.
Frequentis AG ROC % Related Terms
Frequentis AG ROC % Historical Data
* Premium members only.
The historical data trend for Frequentis AG'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 two times the semi-annual (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.
Frequentis AG (WBO:FQT) has a ROC % of 23.45% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Frequentis AG and its competitors.
Is Frequentis AG's ROC % too high?
Frequentis AG's current ROC % is 23.45%. The Hardware industry median ROC % is 4.12. Frequentis AG's value of 23.45% is 469.9% above this industry median. Overall, Frequentis AG has a GF Score™ of 91/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Frequentis AG's ROC % compare to CSCO and CIEN?
Frequentis AG's ROC % of 23.45% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. Frequentis AG's value of 23.45% is 469.9% 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 Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,444 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. Frequentis AG's current ROC % of 23.45% is 469.9% 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 Frequentis AG and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frequentis AG's current ROC % is 23.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frequentis AG stock overvalued right now?
Based on GuruFocus' analysis, Frequentis AG (WBO:FQT) is currently considered Significantly Overvalued. The stock's GF Value™ is €45.16, compared to a current price of €63.30 — trading 40.2% above its estimated fair value. The current ROC % is 23.45% and 469.9% above the Hardware industry median of 4.12. Frequentis AG's overall GF Score™ is 91/100 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 Frequentis AG (WBO:FQT), the current ROC % is 23.45% 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 Frequentis AG (WBO:FQT) Overvalued in 2026?
Based on GuruFocus' analysis, Frequentis AG stock appears to be overvalued.
The current stock price of €63.30 is trading 40.2% above its estimated GF Value™ of €45.16.
GuruFocus considers Frequentis AG to be Significantly Overvalued.
Key valuation signals for WBO:FQT:
ROC %: 23.45%
GF Value™: €45.16 vs. price of €63.30 (40.2% above fair value)
Industry Position: 469.9% above the Hardware median
No single metric tells the full story. See the WBO:FQT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frequentis AG provides communication and information solutions for safety-critical applications. The company serves the air traffic management sector; public safety, public transport; and maritime markets. It offers Custom-tailored control center solutions through the operating segments of Air Traffic Management (ATM); Public Safety and Transport. It derives a majority of its revenue from the Air Traffic Management segment, whose main customers are civil and military air traffic control organizations and homeland security authorities. The Public Safety and Transport segment comprises the public safety, public transport and maritime business units. The order intake is mainly from the European market.
91GF Score
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