ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. One97 Communications's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.00%.
As of today (2026-07-04), One97 Communications's WACC % is 9.69%. One97 Communications's ROIC % is -0.68% (calculated using TTM income statement data).
One97 Communications earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, One97 Communications's WACC % is 9.69%. One97 Communications's ROIC % is -0.68% (calculated using TTM income statement data).
One97 Communications 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.
* 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.
For the Software - Infrastructure subindustry, One97 Communications'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.
One97 Communications ROIC % vs Software Industry
For the Software industry and Technology sector, One97 Communications's ROIC % distribution charts can be found below:
* The bar in red indicates where One97 Communications's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) 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.
One97 Communications (NSE:PAYTM) has a ROIC % of 0.00% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on One97 Communications and its competitors.
Is One97 Communications' ROIC % too high?
One97 Communications' current ROIC % is 0.00%. Overall, One97 Communications has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does One97 Communications' ROIC % compare to MSFT and ORCL?
One97 Communications' ROIC % of 0.00% can be compared against companies in the Software industry. The industry median ROIC % is 3.05. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Software company?
The median ROIC % among Software companies is 3.05, based on 2,828 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 One97 Communications and its competitors. For the Software industry, the median ROIC % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. One97 Communications's current ROIC % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is One97 Communications stock overvalued right now?
Based on GuruFocus' analysis, One97 Communications (NSE:PAYTM) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹948.32, compared to a current price of ₹1,221.40 — trading 28.8% above its estimated fair value. The current ROIC % is 0.00%. One97 Communications' overall GF Score™ is 69/100 with 1 warning sign 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 One97 Communications (NSE:PAYTM), the current ROIC % is 0.00% 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 One97 Communications (NSE:PAYTM) Overvalued in 2026?
Based on GuruFocus' analysis, One97 Communications stock appears to be overvalued.
The current stock price of ₹1,221.40 is trading 28.8% above its estimated GF Value™ of ₹948.32.
GuruFocus considers One97 Communications to be Modestly Overvalued.
Key valuation signals for NSE:PAYTM:
ROIC %: 0.00%
GF Value™: ₹948.32 vs. price of ₹1,221.40 (28.8% above fair value)
No single metric tells the full story. See the NSE:PAYTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
One97 Communications Ltd is a digital ecosystem for consumers and merchants. The company is in the business of providing a) payment and financial services which mainly include payment facilitator services, facilitation of consumer and merchant loan distribution to consumers and merchants, wealth management, etc. b) marketing services which consist of aggregator for digital products, ticketing business, providing voice and messaging platforms to the telecom operators and enterprise customers and other businesses. The group generates the majority of its revenue from customers domiciled in India.
69GF Score
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