Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Armstrong World Industries's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 17.69%.
As of today (2026-08-10), Armstrong World Industries's WACC % is 10.52%. Armstrong World Industries's ROC % is 14.74% (calculated using TTM income statement data).
Armstrong World Industries generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Armstrong World Industries (NYSE:AWI) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Armstrong World Industries's WACC % is 10.52%. Armstrong World Industries's ROC % is 14.74% (calculated using TTM income statement data).
Armstrong World Industries generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Be Aware
Like ROE % and ROA %, ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Jun. 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.
Armstrong World Industries (AWI) has a ROC % of 17.69% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Armstrong World Industries and its competitors.
Is Armstrong World Industries' ROC % too high?
Armstrong World Industries' current ROC % is 17.69%. The Construction industry median ROC % is 4.75. Armstrong World Industries' value of 17.69% is 272.4% above this industry median. Overall, Armstrong World Industries has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Armstrong World Industries' ROC % compare to FBIN and BLDR?
Armstrong World Industries' ROC % of 17.69% can be compared against companies in the Construction industry. The industry median ROC % is 4.75. Armstrong World Industries' value of 17.69% is 272.4% 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 ROC % for a Construction company?
The median ROC % among Construction companies is 4.75, based on 1,763 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Armstrong World Industries's current ROC % of 17.69% is 272.4% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Armstrong World Industries and its competitors. For the Construction industry, the median ROC % is 4.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Armstrong World Industries's current ROC % is 17.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Armstrong World Industries stock overvalued right now?
Based on GuruFocus' analysis, Armstrong World Industries (AWI) is currently considered Fairly Valued. The stock's GF Value™ is $173.75, compared to a current price of $183.35 — trading 5.5% above its estimated fair value. The current ROC % is 17.69% and 272.4% above the Construction industry median of 4.75. Armstrong World Industries' overall GF Score™ is 71/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Armstrong World Industries (AWI), the current ROC % is 17.69% as of Jun. 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 Armstrong World Industries (AWI) Overvalued in 2026?
Based on GuruFocus' analysis, Armstrong World Industries stock appears to be overvalued.
The current stock price of $183.35 is trading 5.5% above its estimated GF Value™ of $173.75.
GuruFocus considers Armstrong World Industries to be Fairly Valued.
Key valuation signals for AWI:
ROC %: 17.69%
GF Value™: $173.75 vs. price of $183.35 (5.5% above fair value)
Industry Position: 272.4% above the Construction median
No single metric tells the full story. See the AWI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Armstrong World Industries Inc designs and manufactures exterior architectural applications, including ceilings, specialty walls, and exterior metal solutions, using materials such as mineral fiber, fiberglass, metal, felt, architectural resin and glass, wood, wood fiber, and glass-reinforced-gypsum. Its segments include Mineral Fiber, which produces suspended mineral fiber and fiberglass ceiling systems and includes results from the Worthington Armstrong Venture (WAVE) for ceiling suspension system (grid) products; Architectural Specialties, which designs, produces, and sources specialty ceilings, walls, and other architectural applications for commercial settings, with revenues mainly project driven; and Unallocated Corporate. The company operates in the United States and Canada.
71GF Score
Get the complete analysis for AWI
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
AWI has been successfully added to your 
