In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Roivant Sciences's Net-Net Working Capital for the quarter that ended in Mar. 2026 was $4.32.
The industry rank for Roivant Sciences's Net-Net Working Capital or its related term are showing as below:
ROIV's Price-to-Net-Net-Working-Capital is ranked worse than 65% of 860
companies
in the Biotechnology industry
Industry Median: 5.545
vs ROIV: 8.33
Roivant Sciences (NAS:ROIV) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Roivant Sciences Net-Net Working Capital Related Terms
Roivant Sciences Net-Net Working Capital Historical Data
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The historical data trend for Roivant Sciences's Net-Net Working Capital 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.
ROIV vs RPRX, BNTX, INCY: Net-Net Working Capital Comparison
For the Biotechnology subindustry, Roivant Sciences's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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.
Roivant Sciences Price-to-Net-Net-Working-Capital vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Roivant Sciences's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Roivant Sciences's Price-to-Net-Net-Working-Capital falls into.
* 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $4.32 mean?
Roivant Sciences (ROIV) has a Net-Net Working Capital of $4.32 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Roivant Sciences According to the industry distribution chart, Roivant Sciences ranks #559 out of 860 companies in the Biotechnology industry, placing it in the top 65%.
Is Roivant Sciences' Net-Net Working Capital too high?
Roivant Sciences' current Net-Net Working Capital is $4.32. The Biotechnology industry median Net-Net Working Capital is 5.55. Roivant Sciences' value of $4.32 is 22.1% below this industry median. Based on the distribution chart, Roivant Sciences ranks #559 out of 860 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Roivant Sciences has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Roivant Sciences' Net-Net Working Capital compare to RPRX and BNTX?
According to the Biotechnology industry distribution chart, Roivant Sciences ranks #559 out of 860 companies for Net-Net Working Capital. This places Roivant Sciences in the lower half of its industry. The industry median Net-Net Working Capital is 5.55. Roivant Sciences' value of $4.32 is 22.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Biotechnology company?
The median Net-Net Working Capital among Biotechnology companies is 5.55, based on 860 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Roivant Sciences's current Net-Net Working Capital of $4.32 is 22.1% below 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Roivant Sciences For the Biotechnology industry, the median Net-Net Working Capital is 5.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Roivant Sciences's current Net-Net Working Capital is $4.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Roivant Sciences stock overvalued right now?
Based on GuruFocus' analysis, Roivant Sciences (ROIV) is currently considered Significantly Overvalued. The stock's GF Value™ is $10.95, compared to a current price of $35.98 — trading 228.6% above its estimated fair value. The current Net-Net Working Capital is $4.32 and 22.1% below the Biotechnology industry median of 5.55. Roivant Sciences' overall GF Score™ is 51/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Roivant Sciences (ROIV), the current Net-Net Working Capital is $4.32 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 Roivant Sciences (ROIV) Overvalued in 2026?
Based on GuruFocus' analysis, Roivant Sciences stock appears to be overvalued.
The current stock price of $35.98 is trading 228.6% above its estimated GF Value™ of $10.95.
GuruFocus considers Roivant Sciences to be Significantly Overvalued.
Key valuation signals for ROIV:
Net-Net Working Capital: $4.32
GF Value™: $10.95 vs. price of $35.98 (228.6% above fair value)
Industry Position: 22.1% below the Biotechnology median (#559 of 860)
No single metric tells the full story. See the ROIV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Roivant Sciences Ltd is a commercial-stage biopharmaceutical company dedicated to improving the delivery of healthcare to patients. It also incubates discovery-stage companies and health technology startups complementary to its biopharmaceutical business. Its drug candidate VTAMA (tapinarof) is a treatment of plaque psoriasis in adult patients and is in its commercial stage. The other drug candidates in their different stages of development are; Batoclimab, IMVT-1402, Brepocitinib, Namilumab, and others.
51GF Score
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