Essilorluxottica (XTER:ESL) ROCE %: 5.59% (As of Dec. 2025)


XTER:ESL Essilorluxottica XTER:ESL
81 GF Score
Price €168.05
GF Value €236.62
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Essilorluxottica ROCE %?

Essilorluxottica XTER:ESL -0.65% 81 ROCE % is 5.59% as of Dec. 2025. GuruFocus rates XTER:ESL with a GF Score™ of 81/100 and a GF Value™ of €236.62 (Modestly Undervalued). The stock has 3 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Essilorluxottica's annualized ROCE % for the quarter that ended in Dec. 2025 was 5.59%.

Essilorluxottica  (XTER:ESL) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Essilorluxottica ROCE % Related Terms

Essilorluxottica ROCE % Historical Data

* Premium members only.

The historical data trend for Essilorluxottica's ROCE % 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.

Essilorluxottica ROCE % Chart

Essilorluxottica Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.79 6.17 6.17 6.61 6.49

Essilorluxottica Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.52 7.76 5.93 7.80 5.59
XTER:ESL
81GF Score
Essilorluxottica XTER:ESL
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Essilorluxottica ROCE % Calculation

Essilorluxottica's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=3509/( ( (64279 - 9081) + (63895 - 10902) )/ 2 )
=3509/( (55198+52993)/ 2 )
=3509/54095.5
=6.49 %

Essilorluxottica's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=2892/( ( (61928 - 11388) + (63895 - 10902) )/ 2 )
=2892/( ( 50540 + 52993 )/ 2 )
=2892/51766.5
=5.59 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 5.59% mean?
Essilorluxottica (XTER:ESL) has a ROCE % of 5.59% as of Dec. 2025.
Is Essilorluxottica's ROCE % too high?
Essilorluxottica's current ROCE % is 5.59%. The Medical Devices & Instruments industry median ROCE % is 2.23. Essilorluxottica's value of 5.59% is 150.7% above this industry median. Overall, Essilorluxottica has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Essilorluxottica's ROCE % compare to ISRG and BDX?
Essilorluxottica's ROCE % of 5.59% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROCE % is 2.23. Essilorluxottica's value of 5.59% is 150.7% 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 ROCE % for a Medical Devices & Instruments company?
The median ROCE % among Medical Devices & Instruments companies is 2.23, based on 814 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essilorluxottica's current ROCE % of 5.59% is 150.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Medical Devices & Instruments industry, the median ROCE % is 2.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essilorluxottica's current ROCE % is 5.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Essilorluxottica stock overvalued right now?
Based on GuruFocus' analysis, Essilorluxottica (XTER:ESL) is currently considered Modestly Undervalued. The stock's GF Value™ is €236.62, compared to a current price of €168.05 — trading 29% below its estimated fair value. The current ROCE % is 5.59% and 150.7% above the Medical Devices & Instruments industry median of 2.23. Essilorluxottica's overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Essilorluxottica (XTER:ESL), the current ROCE % is 5.59% 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 Essilorluxottica (XTER:ESL) Overvalued in 2026?

Based on GuruFocus' analysis, Essilorluxottica stock appears to be undervalued. The current stock price of €168.05 is trading 29% below its estimated GF Value™ of €236.62. GuruFocus considers Essilorluxottica to be Modestly Undervalued.

Key valuation signals for XTER:ESL:

  • ROCE %: 5.59%
  • GF Value™: €236.62 vs. price of €168.05 (29% below fair value)
  • GF Score™: 81/100 with 3 warning signs
  • Industry Position: 150.7% above the Medical Devices & Instruments median

No single metric tells the full story. See the XTER:ESL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Essilorluxottica Business Description

Address 147, Rue de Paris, Charenton-Le-Pont, Paris, FRA, 94220
EssilorLuxottica is a combination of the leading manufacturer of premium frames and sunglasses and the leading manufacturer of optical lenses. Both companies are significantly larger than the next biggest competitor and command over 15% of the fragmented global eyewear market. The company has a broad geographical presence, with around 37% of sales in Europe, 45% in North America, and the rest in Asia and Latin America.
81GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€168.05
Price
€236.62
GF Value