ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Zelira Therapeutics's annualized return on capital (ROC %) for the quarter that ended in Jun. 2025 was -89.79%.
As of today (2026-06-30), Zelira Therapeutics's WACC % is 10.56%. Zelira Therapeutics's ROC % is -78.96% (calculated using TTM income statement data).
Zelira Therapeutics 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, Zelira Therapeutics's WACC % is 10.56%. Zelira Therapeutics's ROC % is -78.96% (calculated using TTM income statement data).
Zelira Therapeutics 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.
Zelira Therapeutics ROC % Related Terms
Zelira Therapeutics ROC % Historical Data
* Premium members only.
The historical data trend for Zelira Therapeutics'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 two times the semi-annual (Jun. 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.
Zelira Therapeutics (ZLDAF) has a ROC % of -89.79% as of Jun. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Zelira Therapeutics and its competitors.
Is Zelira Therapeutics' ROC % too high?
Zelira Therapeutics' current ROC % is -89.79%. Overall, Zelira Therapeutics has a GF Score™ of 10/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zelira Therapeutics' ROC % compare to MTNB and SXTP?
Zelira Therapeutics' ROC % of -89.79% can be compared against companies in the Biotechnology industry. 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 Biotechnology company?
A good ROC % depends on the Biotechnology industry context. 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 Zelira Therapeutics and its competitors. Zelira Therapeutics's current ROC % is -89.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zelira Therapeutics stock overvalued right now?
Based on GuruFocus' analysis, Zelira Therapeutics (ZLDAF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.08, compared to a current price of $0.35 — trading 337.5% above its estimated fair value. The current ROC % is -89.79%. Zelira Therapeutics' overall GF Score™ is 10/100 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 Zelira Therapeutics (ZLDAF), the current ROC % is -89.79% as of Jun. 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 Zelira Therapeutics (ZLDAF) Overvalued in 2026?
Based on GuruFocus' analysis, Zelira Therapeutics stock appears to be overvalued.
The current stock price of $0.35 is trading 337.5% above its estimated GF Value™ of $0.08.
GuruFocus considers Zelira Therapeutics to be Significantly Overvalued.
Key valuation signals for ZLDAF:
ROC %: -89.79%
GF Value™: $0.08 vs. price of $0.35 (337.5% above fair value)
No single metric tells the full story. See the ZLDAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zelira Therapeutics Ltd is a biotechnology company focused on developing a range of cannabinoid-based formulations for the treatment of various medical conditions in Australia. The company is involved in a human clinical trial program focused on insomnia, autism, and eczema, and a pre-clinical research program to examine the effect of cannabinoids in breast, brain, and pancreatic cancer. The company is organised into two operating segments based on geographic location of operations: Australia and United States of America.
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