BAE Systems (LSE:BA.) ROCE %: 13.05% (As of Dec. 2025)


LSE:BA. BAE Systems PLC LSE:BA.
84 GF Score
Price £18.25
GF Value £16.81
Valuation Fairly Valued
! 2 Warning Signs
View Full Analysis

What is BAE Systems ROCE %?

BAE Systems LSE:BA. -0.03% 84 ROCE % is 13.05% as of Dec. 2025. GuruFocus rates LSE:BA. with a GF Score™ of 84/100 and a GF Value™ of £16.81 (Fairly Valued). The stock has 2 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. BAE Systems's annualized ROCE % for the quarter that ended in Dec. 2025 was 13.05%.

BAE Systems  (LSE:BA.) 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.

BAE Systems ROCE % Related Terms

BAE Systems ROCE % Historical Data

* Premium members only.

The historical data trend for BAE Systems'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.

BAE Systems ROCE % Chart

BAE Systems Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.25 11.46 12.47 12.31 12.02

BAE Systems Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 12.92 12.12 11.25 11.59 13.05
LSE:BA.
84GF Score
BAE Systems PLC LSE:BA.
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

BAE Systems ROCE % Calculation

BAE Systems'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 )
=3076/( ( (38142 - 12342) + (37679 - 12303) )/ 2 )
=3076/( (25800+25376)/ 2 )
=3076/25588
=12.02 %

BAE Systems's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=3246/( ( (36001 - 11634) + (37679 - 12303) )/ 2 )
=3246/( ( 24367 + 25376 )/ 2 )
=3246/24871.5
=13.05 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) 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 13.05% mean?
BAE Systems (LSE:BA.) has a ROCE % of 13.05% as of Dec. 2025.
Is BAE Systems' ROCE % too high?
BAE Systems' current ROCE % is 13.05%. The Aerospace & Defense industry median ROCE % is 6.29. BAE Systems' value of 13.05% is 107.5% above this industry median. Overall, BAE Systems has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' ROCE % compare to GE and RTX?
BAE Systems' ROCE % of 13.05% can be compared against companies in the Aerospace & Defense industry. The industry median ROCE % is 6.29. BAE Systems' value of 13.05% is 107.5% 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 ROCE % for an Aerospace & Defense company?
The median ROCE % among Aerospace & Defense companies is 6.29, based on 350 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BAE Systems's current ROCE % of 13.05% is 107.5% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Aerospace & Defense industry, the median ROCE % is 6.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BAE Systems's current ROCE % is 13.05%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BAE Systems stock overvalued right now?
Based on GuruFocus' analysis, BAE Systems (LSE:BA.) is currently considered Fairly Valued. The stock's GF Value™ is £16.81, compared to a current price of £18.25 — trading 8.5% above its estimated fair value. The current ROCE % is 13.05% and 107.5% above the Aerospace & Defense industry median of 6.29. BAE Systems' overall GF Score™ is 84/100 with 2 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 BAE Systems (LSE:BA.), the current ROCE % is 13.05% as of Dec. 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 BAE Systems (LSE:BA.) Overvalued in 2026?

Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued. The current stock price of £18.25 is trading 8.5% above its estimated GF Value™ of £16.81. GuruFocus considers BAE Systems to be Fairly Valued.

Key valuation signals for LSE:BA.:

  • ROCE %: 13.05%
  • GF Value™: £16.81 vs. price of £18.25 (8.5% above fair value)
  • GF Score™: 84/100 with 2 warning signs
  • Industry Position: 107.5% above the Aerospace & Defense median

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

BAE Systems Business Description

Address 6 Carlton Gardens, Stirling Square, London, GBR, SW1Y 5AD
BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the US Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's US- and UK-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the US government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the US Defense Department; the air segment includes BAE's share of US and European air programs as well as its businesses in Saudi Arabia and Australia, and the maritime segment comprises UK land- and marine-based activities.
84GF Score

Get the complete analysis for LSE:BA.

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

£18.25
Price
£16.81
GF Value