Hostelworld Group (LSE:HSW) ROCE %: 16.19% (As of Dec. 2025)


LSE:HSW Hostelworld Group PLC LSE:HSW
82 GF Score
Price £1.11
GF Value £1.46
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Hostelworld Group ROCE %?

Hostelworld Group LSE:HSW +0.91% 82 ROCE % is 16.19% as of Dec. 2025. GuruFocus rates LSE:HSW with a GF Score™ of 82/100 and a GF Value™ of £1.46 (Modestly Undervalued). The stock has 1 warning sign 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. Hostelworld Group's annualized ROCE % for the quarter that ended in Dec. 2025 was 16.19%.

Hostelworld Group  (LSE:HSW) 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.

Hostelworld Group ROCE % Related Terms

Hostelworld Group ROCE % Historical Data

* Premium members only.

The historical data trend for Hostelworld Group'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.

Hostelworld Group ROCE % Chart

Hostelworld Group 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 -31.46 -14.07 6.10 15.65 11.00

Hostelworld Group 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 20.11 11.48 21.03 6.08 16.19
LSE:HSW
82GF Score
Hostelworld Group PLC LSE:HSW
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Hostelworld Group ROCE % Calculation

Hostelworld Group'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 )
=7.435/( ( (74.959 - 13.998) + (90.007 - 15.832) )/ 2 )
=7.435/( (60.961+74.175)/ 2 )
=7.435/67.568
=11.00 %

Hostelworld Group'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 )
=11.022/( ( (79.31 - 17.341) + (90.007 - 15.832) )/ 2 )
=11.022/( ( 61.969 + 74.175 )/ 2 )
=11.022/68.072
=16.19 %

(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 16.19% mean?
Hostelworld Group (LSE:HSW) has a ROCE % of 16.19% as of Dec. 2025.
Is Hostelworld Group's ROCE % too high?
Hostelworld Group's current ROCE % is 16.19%. The Travel & Leisure industry median ROCE % is 6.08. Hostelworld Group's value of 16.19% is 166.5% above this industry median. Overall, Hostelworld Group has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hostelworld Group's ROCE % compare to BKNG and ABNB?
Hostelworld Group's ROCE % of 16.19% can be compared against companies in the Travel & Leisure industry. The industry median ROCE % is 6.08. Hostelworld Group's value of 16.19% is 166.5% 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 a Travel & Leisure company?
The median ROCE % among Travel & Leisure companies is 6.08, based on 838 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. Hostelworld Group's current ROCE % of 16.19% is 166.5% 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 Travel & Leisure industry, the median ROCE % is 6.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hostelworld Group's current ROCE % is 16.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hostelworld Group stock overvalued right now?
Based on GuruFocus' analysis, Hostelworld Group (LSE:HSW) is currently considered Modestly Undervalued. The stock's GF Value™ is £1.46, compared to a current price of £1.11 — trading 24.3% below its estimated fair value. The current ROCE % is 16.19% and 166.5% above the Travel & Leisure industry median of 6.08. Hostelworld Group's overall GF Score™ is 82/100 with 1 warning sign 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 Hostelworld Group (LSE:HSW), the current ROCE % is 16.19% 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 Hostelworld Group (LSE:HSW) Overvalued in 2026?

Based on GuruFocus' analysis, Hostelworld Group stock appears to be undervalued. The current stock price of £1.11 is trading 24.3% below its estimated GF Value™ of £1.46. GuruFocus considers Hostelworld Group to be Modestly Undervalued.

Key valuation signals for LSE:HSW:

  • ROCE %: 16.19%
  • GF Value™: £1.46 vs. price of £1.11 (24.3% below fair value)
  • GF Score™: 82/100 with 1 warning sign
  • Industry Position: 166.5% above the Travel & Leisure median

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

Hostelworld Group Business Description

Address Charlemont Street, Floor 3, Charlemont Exchange, Dublin, IRL, D02 VN88
Hostelworld Group PLC is a social network-powered Online Travel Agent (OTA) focused on the hostel market. It has developed and promoted the Hostelworld brand, operating a two-sided marketplace focused on the hostelling category. The Hostel partners load their bed inventory to the company's platform, which it markets to customers via its website and mobile Android and iOS apps. In addition, the Hostelworld platform has a series of social features on its platform that connect travellers in hostels and cities based on their booking data. Geographically, it derives maximum revenue from Europe, followed by Asia, Africa and Oceania, and the Americas.
82GF Score

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

£1.11
Price
£1.46
GF Value