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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Tian Ge Interactive Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -4.98%.
As of today (2026-08-10), Tian Ge Interactive Holdings's WACC % is 7.47%. Tian Ge Interactive Holdings's ROIC % is -4.11% (calculated using TTM income statement data).
Tian Ge Interactive Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Tian Ge Interactive Holdings (HKSE:01980) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Tian Ge Interactive Holdings's WACC % is 7.47%. Tian Ge Interactive Holdings's ROIC % is -4.11% (calculated using TTM income statement data).
Tian Ge Interactive Holdings 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 %, ROIC % 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.
Tian Ge Interactive Holdings ROIC % Related Terms
Tian Ge Interactive Holdings ROIC % Historical 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.
HKSE:01980 vs GOOGL, META, SPOT: ROIC % Comparison
For the Internet Content & Information subindustry, Tian Ge Interactive Holdings's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tian Ge Interactive Holdings ROIC % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tian Ge Interactive Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Tian Ge Interactive Holdings's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 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.
Tian Ge Interactive Holdings (HKSE:01980) has a ROIC % of -4.98% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Tian Ge Interactive Holdings and its competitors.
Is Tian Ge Interactive Holdings' ROIC % too high?
Tian Ge Interactive Holdings' current ROIC % is -4.98%. Overall, Tian Ge Interactive Holdings has a GF Score™ of 38/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tian Ge Interactive Holdings' ROIC % compare to GOOGL and META?
Tian Ge Interactive Holdings' ROIC % of -4.98% can be compared against companies in the Interactive Media industry. The industry median ROIC % is 2.00. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Interactive Media company?
The median ROIC % among Interactive Media companies is 2.00, based on 556 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Tian Ge Interactive Holdings and its competitors. For the Interactive Media industry, the median ROIC % is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tian Ge Interactive Holdings's current ROIC % is -4.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tian Ge Interactive Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tian Ge Interactive Holdings (HKSE:01980) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.58, compared to a current price of HK$0.58 — trading right at its estimated fair value. The current ROIC % is -4.98%. Tian Ge Interactive Holdings' overall GF Score™ is 38/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Tian Ge Interactive Holdings (HKSE:01980), the current ROIC % is -4.98% 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 Tian Ge Interactive Holdings (HKSE:01980) Overvalued in 2026?
Based on GuruFocus' analysis, Tian Ge Interactive Holdings stock appears to be undervalued.
The current stock price of HK$0.58 is trading 0% below its estimated GF Value™ of HK$0.58.
GuruFocus considers Tian Ge Interactive Holdings to be Fairly Valued.
Key valuation signals for HKSE:01980:
ROIC %: -4.98%
GF Value™: HK$0.58 vs. price of HK$0.58 (0% below fair value)
No single metric tells the full story. See the HKSE:01980 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tian Ge Interactive Holdings Ltd is a Chinese investment holding company that engages in the online entertainment business. The company develops and operates real-time video technology so its users can socialize and interact through video chat and text. The company is also involved with creating mobile game platforms, O2O Entertainments, and has a health, personal, and beauty care business. The firm's segments include Online interactive entertainment services and Others. Online interactive entertainment services comprise the vast majority of the firm's overall revenue. It operates its business in China and also has its presence in other countries.
38GF Score
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