ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Compania Espanola de Viviendas en Alquiler's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 6.01%.
As of today (2026-06-25), Compania Espanola de Viviendas en Alquiler's WACC % is 4.24%. Compania Espanola de Viviendas en Alquiler's ROC % is 5.45% (calculated using TTM income statement data).
Compania Espanola de Viviendas en Alquiler 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.
Compania Espanola de Viviendas en Alquiler (XMAD:CEV) 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, Compania Espanola de Viviendas en Alquiler's WACC % is 4.24%. Compania Espanola de Viviendas en Alquiler's ROC % is 5.45% (calculated using TTM income statement data).
Compania Espanola de Viviendas en Alquiler 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.
Compania Espanola de Viviendas en Alquiler ROC % Related Terms
Compania Espanola de Viviendas en Alquiler ROC % Historical Data
* 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.
Compania Espanola de Viviendas en Alquiler ROC % Chart
Compania Espanola de Viviendas en Alquiler Annual Data
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.
Compania Espanola de Viviendas en Alquiler (XMAD:CEV) has a ROC % of 6.01% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Compania Espanola de Viviendas en Alquiler and its competitors.
Is Compania Espanola de Viviendas en Alquiler's ROC % too high?
Compania Espanola de Viviendas en Alquiler's current ROC % is 6.01%. The Real Estate industry median ROC % is 2.19. Compania Espanola de Viviendas en Alquiler's value of 6.01% is 174.4% above this industry median. Overall, Compania Espanola de Viviendas en Alquiler has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Compania Espanola de Viviendas en Alquiler's ROC % compare to competitors?
Compania Espanola de Viviendas en Alquiler's ROC % of 6.01% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.19. Compania Espanola de Viviendas en Alquiler's value of 6.01% is 174.4% 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 Real Estate company?
The median ROC % among Real Estate companies is 2.19, based on 1,757 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. Compania Espanola de Viviendas en Alquiler's current ROC % of 6.01% is 174.4% 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 Compania Espanola de Viviendas en Alquiler and its competitors. For the Real Estate industry, the median ROC % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Compania Espanola de Viviendas en Alquiler's current ROC % is 6.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Compania Espanola de Viviendas en Alquiler stock overvalued right now?
Based on GuruFocus' analysis, Compania Espanola de Viviendas en Alquiler (XMAD:CEV) is currently considered Significantly Overvalued. The stock's GF Value™ is €6.41, compared to a current price of €11.00 — trading 71.6% above its estimated fair value. The current ROC % is 6.01% and 174.4% above the Real Estate industry median of 2.19. Compania Espanola de Viviendas en Alquiler's overall GF Score™ is 70/100 with 9 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 Compania Espanola de Viviendas en Alquiler (XMAD:CEV), the current ROC % is 6.01% 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 Compania Espanola de Viviendas en Alquiler (XMAD:CEV) Overvalued in 2026?
Based on GuruFocus' analysis, Compania Espanola de Viviendas en Alquiler stock appears to be overvalued.
The current stock price of €11.00 is trading 71.6% above its estimated GF Value™ of €6.41.
GuruFocus considers Compania Espanola de Viviendas en Alquiler to be Significantly Overvalued.
Key valuation signals for XMAD:CEV:
ROC %: 6.01%
GF Value™: €6.41 vs. price of €11.00 (71.6% above fair value)
Industry Position: 174.4% above the Real Estate median
No single metric tells the full story. See the XMAD:CEV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Compania Espanola de Viviendas en Alquiler Business Description
Compania Espanola de Viviendas en Alquiler SA operates in the real estate sector, and its main objective is to develop equity investments in social housing. The company is engaged in the development and management of residential and non-residential properties. Its property portfolio consists of housing units, commercial and industrial properties.
70GF Score
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