ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Beyond Air's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was -135.90%.
As of today (2026-06-25), Beyond Air's WACC % is 17.62%. Beyond Air's ROC % is -152.10% (calculated using TTM income statement data).
Beyond Air earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Beyond Air (NAS:XAIR) 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, Beyond Air's WACC % is 17.62%. Beyond Air's ROC % is -152.10% (calculated using TTM income statement data).
Beyond Air 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.
Beyond Air ROC % Related Terms
Beyond Air ROC % Historical Data
* Premium members only.
The historical data trend for Beyond Air'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.
Beyond Air (XAIR) has a ROC % of -135.90% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Beyond Air and its competitors.
Is Beyond Air's ROC % too high?
Beyond Air's current ROC % is -135.90%. Overall, Beyond Air has a GF Score™ of 27/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Beyond Air's ROC % compare to LUDG and INBS?
Beyond Air's ROC % of -135.90% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROC % is 1.27. 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 1.27, based on 847 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 Beyond Air and its competitors. For the Medical Devices & Instruments industry, the median ROC % is 1.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beyond Air's current ROC % is -135.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beyond Air stock overvalued right now?
Based on GuruFocus' analysis, Beyond Air (XAIR) is currently considered Possible Value Trap. The stock's GF Value™ is $9.75, compared to a current price of $0.48 — trading 95.1% below its estimated fair value. The current ROC % is -135.90%. Beyond Air's overall GF Score™ is 27/100 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 Beyond Air (XAIR), the current ROC % is -135.90% 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 Beyond Air (XAIR) Overvalued in 2026?
Based on GuruFocus' analysis, Beyond Air stock appears to be undervalued.
The current stock price of $0.48 is trading 95.1% below its estimated GF Value™ of $9.75.
GuruFocus considers Beyond Air to be Possible Value Trap.
Key valuation signals for XAIR:
ROC %: -135.90%
GF Value™: $9.75 vs. price of $0.48 (95.1% below fair value)
No single metric tells the full story. See the XAIR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Beyond Air Inc is a commercial-stage medical device and biopharmaceutical company that develops a Nitric Oxide (NO) Generator and Delivery System that uses NO generated from ambient air and delivers precise amounts of NO to the lungs for the potential treatment of respiratory and other diseases. The firm is applying its therapeutic expertise to develop treatments for pulmonary hypertension, in addition to treatments for lower respiratory tract infections.
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