Tesco (TSCDF) ROCE %: 12.11% (As of Feb. 2026)


TSCDF Tesco PLC TSCDF
81 GF Score
Price $6.09
GF Value $5.18
Valuation Modestly Overvalued
! 4 Warning Signs
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What is Tesco ROCE %?

Tesco TSCDF +2.87% 81 ROCE % is 12.11% as of Feb. 2026. GuruFocus rates TSCDF with a GF Score™ of 81/100 and a GF Value™ of $5.18 (Modestly 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. Tesco's annualized ROCE % for the quarter that ended in Feb. 2026 was 12.11%.

Tesco  (OTCPK:TSCDF) 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.

Tesco ROCE % Related Terms

Tesco ROCE % Historical Data

* Premium members only.

The historical data trend for Tesco'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.

Tesco ROCE % Chart

Tesco Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.47 4.67 11.58 11.54 13.08

Tesco Semi-Annual Data
Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
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 11.03 13.87 9.37 14.13 12.11
TSCDF
81GF Score
Tesco PLC TSCDF
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Tesco ROCE % Calculation

Tesco's annualized ROCE % for the fiscal year that ended in Feb. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Feb. 2026 )  (A: Feb. 2025 )(A: Feb. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Feb. 2026 )  (A: Feb. 2025 )(A: Feb. 2026 )
=4292.12/( ( (48795.483 - 17340.025) + (53633.152 - 19468.75) )/ 2 )
=4292.12/( (31455.458+34164.402)/ 2 )
=4292.12/32809.93
=13.08 %

Tesco's ROCE % of for the quarter that ended in Feb. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Feb. 2026 )  (Q: Aug. 2025 )(Q: Feb. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Feb. 2026 )  (Q: Aug. 2025 )(Q: Feb. 2026 )
=4029.892/( ( (53177.658 - 20787.349) + (53633.152 - 19468.75) )/ 2 )
=4029.892/( ( 32390.309 + 34164.402 )/ 2 )
=4029.892/33277.3555
=12.11 %

(1) Note: The EBIT data used here is two times the semi-annual (Feb. 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 12.11% mean?
Tesco (TSCDF) has a ROCE % of 12.11% as of Feb. 2026.
Is Tesco's ROCE % too high?
Tesco's current ROCE % is 12.11%. The Retail - Defensive industry median ROCE % is 8.98. Tesco's value of 12.11% is 34.9% above this industry median. Overall, Tesco has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tesco's ROCE % compare to KR and SFM?
Tesco's ROCE % of 12.11% can be compared against companies in the Retail - Defensive industry. The industry median ROCE % is 8.98. Tesco's value of 12.11% is 34.9% 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 Retail - Defensive company?
The median ROCE % among Retail - Defensive companies is 8.98, based on 307 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. Tesco's current ROCE % of 12.11% is 34.9% 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 Retail - Defensive industry, the median ROCE % is 8.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tesco's current ROCE % is 12.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tesco stock overvalued right now?
Based on GuruFocus' analysis, Tesco (TSCDF) is currently considered Modestly Overvalued. The stock's GF Value™ is $5.18, compared to a current price of $6.09 — trading 17.6% above its estimated fair value. The current ROCE % is 12.11% and 34.9% above the Retail - Defensive industry median of 8.98. Tesco's overall GF Score™ is 81/100 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 Tesco (TSCDF), the current ROCE % is 12.11% as of Feb. 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 Tesco (TSCDF) Overvalued in 2026?

Based on GuruFocus' analysis, Tesco stock appears to be overvalued. The current stock price of $6.09 is trading 17.6% above its estimated GF Value™ of $5.18. GuruFocus considers Tesco to be Modestly Overvalued.

Key valuation signals for TSCDF:

  • ROCE %: 12.11%
  • GF Value™: $5.18 vs. price of $6.09 (17.6% above fair value)
  • GF Score™: 81/100 with 4 warning signs
  • Industry Position: 34.9% above the Retail - Defensive median

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

Tesco Business Description

Address Kestrel Way, Tesco House, Shire Park, Welwyn Garden, GBR, AL7 1GA
Tesco is a large food retailer, operating thousands of stores in the United Kingdom, Ireland, and Central Europe. The majority of Tesco's sales are from the UK, where the firm has over 24% market share, more than double the second-largest peer, Sainsbury's, according to Euromonitor. Tesco also holds 30% e-grocery market share in the UK, holding a dominant position online. Tesco gained exposure to the cash-and-carry and out-of-home delivery industries with the GBP 4 billion acquisition of Booker in 2018.
81GF Score

Get the complete analysis for TSCDF

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

$6.09
Price
$5.18
GF Value