Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Nepal Life Insurance Co's annualized return on capital (ROC %) for the quarter that ended in Jul. 2026 was 0.00%.
As of today (2026-09-15), Nepal Life Insurance Co's WACC % is 10.07%. Nepal Life Insurance Co's ROC % is 0.18% (calculated using TTM income statement data).
Nepal Life Insurance Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Nepal Life Insurance Co (XNEP:NLIC) 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, Nepal Life Insurance Co's WACC % is 10.07%. Nepal Life Insurance Co's ROC % is 0.18% (calculated using TTM income statement data).
Nepal Life Insurance Co 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 EBIT data used here is four times the quarterly (Jul. 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.
Nepal Life Insurance Co (XNEP:NLIC) has a ROC % of 0.00% as of Jul. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nepal Life Insurance Co and its competitors.
Is Nepal Life Insurance Co's ROC % too high?
Nepal Life Insurance Co's current ROC % is 0.00%. Overall, Nepal Life Insurance Co has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nepal Life Insurance Co's ROC % compare to MET and AFL?
Nepal Life Insurance Co's ROC % of 0.00% can be compared against companies in the Insurance industry. The industry median ROC % is 3.42. 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 Insurance company?
The median ROC % among Insurance companies is 3.42, based on 362 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 Nepal Life Insurance Co and its competitors. For the Insurance industry, the median ROC % is 3.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nepal Life Insurance Co's current ROC % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nepal Life Insurance Co stock overvalued right now?
Based on GuruFocus' analysis, Nepal Life Insurance Co (XNEP:NLIC) is currently considered Modestly Undervalued. The stock's GF Value™ is NPR813.72, compared to a current price of NPR709.00 — trading 12.9% below its estimated fair value. The current ROC % is 0.00%. Nepal Life Insurance Co's overall GF Score™ is 91/100 with 5 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 Nepal Life Insurance Co (XNEP:NLIC), the current ROC % is 0.00% as of Jul. 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.
Is Nepal Life Insurance Co (XNEP:NLIC) Overvalued in 2026?
Based on GuruFocus' analysis, Nepal Life Insurance Co stock appears to be undervalued.
The current stock price of NPR709.00 is trading 12.9% below its estimated GF Value™ of NPR813.72.
GuruFocus considers Nepal Life Insurance Co to be Modestly Undervalued.
Key valuation signals for XNEP:NLIC:
ROC %: 0.00%
GF Value™: NPR813.72 vs. price of NPR709.00 (12.9% below fair value)
No single metric tells the full story. See the XNEP:NLIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nepal Life Insurance Co Ltd is a Nepal based life insurance company. The company's operating segments include Endowment Life, Money Back, Jeevan Sahara, Jeevan Sarathi, and Term Life Insurance Policy. Company includes various product's like Ketaketi Sunaulo Bhawishya Jeevan Beema Yojana, Sunaulo Bhabisya Jeevan Beema Yojana, Jeevan Unnati Beema Yojana, Naulo Jeevan Sambriddhi Jeevan Beema Yojana, Anmol Jeevan Beema Yojana, iEnsure Jeevan Beema Yojana, Gramin Sawadhik Jeevan Beema Yojana and many more.
91GF Score
Get the complete analysis for XNEP:NLIC
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XNEP:NLIC has been successfully added to your 
