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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Soaltee Hotel's annualized return on capital (ROC %) for the quarter that ended in Jan. 2026 was 26.51%.
As of today (2026-08-20), Soaltee Hotel's WACC % is 10.68%. Soaltee Hotel's ROC % is 10.36% (calculated using TTM income statement data).
Soaltee Hotel earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Soaltee Hotel's WACC % is 10.68%. Soaltee Hotel's ROC % is 10.36% (calculated using TTM income statement data).
Soaltee Hotel 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.
Soaltee Hotel ROC % Related Terms
Soaltee Hotel ROC % Historical Data
* Premium members only.
The historical data trend for Soaltee Hotel'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 (Jan. 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.
Soaltee Hotel (XNEP:SHL) has a ROC % of 26.51% as of Jan. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Soaltee Hotel and its competitors.
Is Soaltee Hotel's ROC % too high?
Soaltee Hotel's current ROC % is 26.51%. The Travel & Leisure industry median ROC % is 3.74. Soaltee Hotel's value of 26.51% is 608.8% above this industry median. Overall, Soaltee Hotel has a GF Score™ of 100/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Soaltee Hotel's ROC % compare to MAR and HLT?
Soaltee Hotel's ROC % of 26.51% can be compared against companies in the Travel & Leisure industry. The industry median ROC % is 3.74. Soaltee Hotel's value of 26.51% is 608.8% 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 Travel & Leisure company?
The median ROC % among Travel & Leisure companies is 3.74, based on 835 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. Soaltee Hotel's current ROC % of 26.51% is 608.8% 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 Soaltee Hotel and its competitors. For the Travel & Leisure industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Soaltee Hotel's current ROC % is 26.51%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Soaltee Hotel stock overvalued right now?
Based on GuruFocus' analysis, Soaltee Hotel (XNEP:SHL) is currently considered Fairly Valued. The stock's GF Value™ is NPR530.10, compared to a current price of NPR498.00 — trading 6.1% below its estimated fair value. The current ROC % is 26.51% and 608.8% above the Travel & Leisure industry median of 3.74. Soaltee Hotel's overall GF Score™ is 100/100 with 4 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 Soaltee Hotel (XNEP:SHL), the current ROC % is 26.51% as of Jan. 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 Soaltee Hotel (XNEP:SHL) Overvalued in 2026?
Based on GuruFocus' analysis, Soaltee Hotel stock appears to be undervalued.
The current stock price of NPR498.00 is trading 6.1% below its estimated GF Value™ of NPR530.10.
GuruFocus considers Soaltee Hotel to be Fairly Valued.
Key valuation signals for XNEP:SHL:
ROC %: 26.51%
GF Value™: NPR530.10 vs. price of NPR498.00 (6.1% below fair value)
Industry Position: 608.8% above the Travel & Leisure median
No single metric tells the full story. See the XNEP:SHL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Soaltee Hotel Ltd is a five-star hotel in Nepal engaged in the tourism industry, offering luxurious properties and hospitality across the region. Its brands include The Soaltee Kathmandu, Tiger Palace By Soaltee Bhairawaha, Soaltee Westend Premier Nepalgunj, and others. The company has three operating segments: the Room Segment, which includes reservations, front desk, housekeeping, and guest services; the Food & Beverage Segment and Flight Services Division, which provide food and beverage services to its customers; and the Other Segment, which includes the Corporate Division, Sales & Marketing Department, Human Resource Department, and other service centres except the Room and Food & Beverage segments. The majority of revenue comes from the Food & Beverage Segment.
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