ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Italian Wine Brands SpA's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 6.19%.
As of today (2026-06-26), Italian Wine Brands SpA's WACC % is 4.65%. Italian Wine Brands SpA's ROC % is 6.56% (calculated using TTM income statement data).
Italian Wine Brands SpA 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.
Italian Wine Brands SpA (MIL:IWB) 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, Italian Wine Brands SpA's WACC % is 4.65%. Italian Wine Brands SpA's ROC % is 6.56% (calculated using TTM income statement data).
Italian Wine Brands SpA 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 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.
Italian Wine Brands SpA (MIL:IWB) has a ROC % of 6.19% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Italian Wine Brands SpA and its competitors.
Is Italian Wine Brands SpA's ROC % too high?
Italian Wine Brands SpA's current ROC % is 6.19%. The Beverages - Alcoholic industry median ROC % is 4.70. Italian Wine Brands SpA's value of 6.19% is 31.7% above this industry median. Overall, Italian Wine Brands SpA has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Italian Wine Brands SpA's ROC % compare to BF.B?
Italian Wine Brands SpA's ROC % of 6.19% can be compared against companies in the Beverages - Alcoholic industry. The industry median ROC % is 4.70. Italian Wine Brands SpA's value of 6.19% is 31.7% 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 Beverages - Alcoholic company?
The median ROC % among Beverages - Alcoholic companies is 4.70, based on 211 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. Italian Wine Brands SpA's current ROC % of 6.19% is 31.7% 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 Italian Wine Brands SpA and its competitors. For the Beverages - Alcoholic industry, the median ROC % is 4.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Italian Wine Brands SpA's current ROC % is 6.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Italian Wine Brands SpA stock overvalued right now?
Based on GuruFocus' analysis, Italian Wine Brands SpA (MIL:IWB) is currently considered Modestly Undervalued. The stock's GF Value™ is €21.13, compared to a current price of €18.68 — trading 11.6% below its estimated fair value. The current ROC % is 6.19% and 31.7% above the Beverages - Alcoholic industry median of 4.70. Italian Wine Brands SpA's overall GF Score™ is 75/100 with 4 warning signs 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 Italian Wine Brands SpA (MIL:IWB), the current ROC % is 6.19% 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 Italian Wine Brands SpA (MIL:IWB) Overvalued in 2026?
Based on GuruFocus' analysis, Italian Wine Brands SpA stock appears to be undervalued.
The current stock price of €18.68 is trading 11.6% below its estimated GF Value™ of €21.13.
GuruFocus considers Italian Wine Brands SpA to be Modestly Undervalued.
Key valuation signals for MIL:IWB:
ROC %: 6.19%
GF Value™: €21.13 vs. price of €18.68 (11.6% below fair value)
Industry Position: 31.7% above the Beverages - Alcoholic median
No single metric tells the full story. See the MIL:IWB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Italian Wine Brands SpA through its subsidiaries is engaged in the production and distribution of wine in Italy. The group works through two different sales channels namely Distance Selling and Wholesale. The company also offers gourmet food products, coffee, and extra virgin olive oil, to Terre dei Gigli and Italian Art Cafe brands. The company operates in Europe and rest of the world.
75GF Score
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