Revolution Medicines (FRA:42Z) ROCE %: -88.28% (As of Mar. 2026)


FRA:42Z Revolution Medicines Inc FRA:42Z
36 GF Score
Price €159.50
GF Value €0.39
Valuation Significantly Overvalued
! 4 Warning Signs
View Full Analysis

What is Revolution Medicines ROCE %?

Revolution Medicines FRA:42Z +1.46% 36 ROCE % is -88.28% as of Mar. 2026. GuruFocus rates FRA:42Z with a GF Score™ of 36/100 and a GF Value™ of €0.39 (Significantly Overvalued). The stock has 4 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Revolution Medicines's annualized ROCE % for the quarter that ended in Mar. 2026 was -88.28%.

Revolution Medicines  (FRA:42Z) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Revolution Medicines ROCE % Related Terms

Revolution Medicines ROCE % Historical Data

* Premium members only.

The historical data trend for Revolution Medicines's ROCE % 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.

Revolution Medicines ROCE % Chart

Revolution Medicines Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only -32.23 -37.29 -32.71 -28.37 -46.70

Revolution Medicines Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -41.17 -46.04 -54.77 -69.45 -88.28
FRA:42Z
36GF Score
Revolution Medicines Inc FRA:42Z
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Revolution Medicines ROCE % Calculation

Revolution Medicines's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=-945.438/( ( (2443.177 - 156.538) + (2010.75 - 248.022) )/ 2 )
=-945.438/( (2286.639+1762.728)/ 2 )
=-945.438/2024.6835
=-46.70 %

Revolution Medicines's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=-1528/( ( (2010.75 - 248.022) + (1949.483 - 250.503) )/ 2 )
=-1528/( ( 1762.728 + 1698.98 )/ 2 )
=-1528/1730.854
=-88.28 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of -88.28% mean?
Revolution Medicines (FRA:42Z) has a ROCE % of -88.28% as of Mar. 2026.
Is Revolution Medicines' ROCE % too high?
Revolution Medicines' current ROCE % is -88.28%. Overall, Revolution Medicines has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Revolution Medicines' ROCE % compare to ONC and ALNY?
Revolution Medicines' ROCE % of -88.28% 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 ROCE % for a Biotechnology company?
A good ROCE % depends on the Biotechnology industry context. However, ROCE % 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. Revolution Medicines's current ROCE % is -88.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Revolution Medicines stock overvalued right now?
Based on GuruFocus' analysis, Revolution Medicines (FRA:42Z) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.39, compared to a current price of €159.50 — trading 40797.4% above its estimated fair value. The current ROCE % is -88.28%. Revolution Medicines' overall GF Score™ is 36/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Revolution Medicines (FRA:42Z), the current ROCE % is -88.28% 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 Revolution Medicines (FRA:42Z) Overvalued in 2026?

Based on GuruFocus' analysis, Revolution Medicines stock appears to be overvalued. The current stock price of €159.50 is trading 40797.4% above its estimated GF Value™ of €0.39. GuruFocus considers Revolution Medicines to be Significantly Overvalued.

Key valuation signals for FRA:42Z:

  • ROCE %: -88.28%
  • GF Value™: €0.39 vs. price of €159.50 (40797.4% above fair value)
  • GF Score™: 36/100 with 4 warning signs

No single metric tells the full story. See the FRA:42Z stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Revolution Medicines Business Description

Address 700 Saginaw Drive, Redwood City, CA, USA, 94063
Revolution Medicines Inc is a clinical-stage precision oncology company developing novel targeted therapies for RAS-addicted cancers. The Company possesses structure-based drug discovery capabilities built upon chemical biology and cancer pharmacology know-how and proprietary technologies that enable the creation of small molecules tailored to unconventional binding sites. Its research and development pipeline comprises inhibitors that bind directly to RAS variants (RAS(ON) Inhibitors), designed to be used as monotherapy, in combination with other RAS(ON) Inhibitors and/or other therapeutic agents.
36GF Score

Get the complete analysis for FRA:42Z

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€159.50
Price
€0.39
GF Value