ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. DEMIRE Deutsche Mittelstand Real Estate AG's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 1.46%.
DEMIRE Deutsche Mittelstand Real Estate AG (XTER:DMRE) 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, DEMIRE Deutsche Mittelstand Real Estate AG's WACC % is 10.73%. DEMIRE Deutsche Mittelstand Real Estate AG's ROC % is 2.70% (calculated using TTM income statement data).
DEMIRE Deutsche Mittelstand Real Estate AG 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.
DEMIRE Deutsche Mittelstand Real Estate AG ROC % Related Terms
DEMIRE Deutsche Mittelstand Real Estate AG 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.
DEMIRE Deutsche Mittelstand Real Estate AG ROC % Chart
DEMIRE Deutsche Mittelstand Real Estate AG Annual Data
Note:
The Operating Income data used here is four times the quarterly (Mar. 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.
DEMIRE Deutsche Mittelstand Real Estate AG (XTER:DMRE) has a ROC % of 1.46% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on DEMIRE Deutsche Mittelstand Real Estate AG and its competitors.
Is DEMIRE Deutsche Mittelstand Real Estate AG's ROC % too high?
DEMIRE Deutsche Mittelstand Real Estate AG's current ROC % is 1.46%. The Real Estate industry median ROC % is 2.19. DEMIRE Deutsche Mittelstand Real Estate AG's value of 1.46% is 33.3% below this industry median. Overall, DEMIRE Deutsche Mittelstand Real Estate AG has a GF Score™ of 26/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does DEMIRE Deutsche Mittelstand Real Estate AG's ROC % compare to CBRE and BEKE?
DEMIRE Deutsche Mittelstand Real Estate AG's ROC % of 1.46% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.19. DEMIRE Deutsche Mittelstand Real Estate AG's value of 1.46% is 33.3% below 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. DEMIRE Deutsche Mittelstand Real Estate AG's current ROC % of 1.46% is 33.3% below 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 DEMIRE Deutsche Mittelstand Real Estate AG 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. DEMIRE Deutsche Mittelstand Real Estate AG's current ROC % is 1.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DEMIRE Deutsche Mittelstand Real Estate AG stock overvalued right now?
Based on GuruFocus' analysis, DEMIRE Deutsche Mittelstand Real Estate AG (XTER:DMRE) is currently considered Possible Value Trap. The stock's GF Value™ is €0.60, compared to a current price of €0.36 — trading 40.7% below its estimated fair value. The current ROC % is 1.46% and 33.3% below the Real Estate industry median of 2.19. DEMIRE Deutsche Mittelstand Real Estate AG's overall GF Score™ is 26/100 with 7 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 DEMIRE Deutsche Mittelstand Real Estate AG (XTER:DMRE), the current ROC % is 1.46% as of Mar. 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 DEMIRE Deutsche Mittelstand Real Estate AG (XTER:DMRE) Overvalued in 2026?
Based on GuruFocus' analysis, DEMIRE Deutsche Mittelstand Real Estate AG stock appears to be undervalued.
The current stock price of €0.36 is trading 40.7% below its estimated GF Value™ of €0.60.
GuruFocus considers DEMIRE Deutsche Mittelstand Real Estate AG to be Possible Value Trap.
Key valuation signals for XTER:DMRE:
ROC %: 1.46%
GF Value™: €0.60 vs. price of €0.36 (40.7% below fair value)
Industry Position: 33.3% below the Real Estate median
No single metric tells the full story. See the XTER:DMRE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DEMIRE Deutsche Mittelstand Real Estate AG Business Description
DEMIRE Deutsche Mittelstand Real Estate AG is a Germany-based commercial real estate company. It focuses on German real estate market and is an investor and property holder in the segment for secondary locations where its activities include acquisition management and rental of commercial properties. The company concentrates on office, retail, hotel and logistics, real estate and owns properties in medium-sized cities and locations bordering metropolitan areas across Germany, such as in the Munich, Freiburg, Rostock, Dusseldorf, Bonn, Hamburg, Berlin and Dresden areas. The Company's particular strength lies in realizing the potential of the properties at these locations while focusing on a range of properties that appeals to both regional and international tenants.
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