ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Digital Turbine's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 7.30%.
As of today (2026-06-25), Digital Turbine's WACC % is 20.82%. Digital Turbine's ROIC % is 5.86% (calculated using TTM income statement data).
Digital Turbine earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Digital Turbine (NAS:APPS) ROIC % Explanation
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, Digital Turbine's WACC % is 20.82%. Digital Turbine's ROIC % is 5.86% (calculated using TTM income statement data).
Digital Turbine 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.
Digital Turbine ROIC % Related Terms
Digital Turbine ROIC % Historical Data
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The historical data trend for Digital Turbine's ROIC % 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.
For the Software - Application subindustry, Digital Turbine'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.
Digital Turbine ROIC % vs Software Industry
For the Software industry and Technology sector, Digital Turbine's ROIC % distribution charts can be found below:
* The bar in red indicates where Digital Turbine'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.
Digital Turbine (APPS) has a ROIC % of 7.30% 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 Digital Turbine and its competitors.
Is Digital Turbine's ROIC % too high?
Digital Turbine's current ROIC % is 7.30%. The Software industry median ROIC % is 3.11. Digital Turbine's value of 7.30% is 135.1% above this industry median. Overall, Digital Turbine has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Digital Turbine's ROIC % compare to AMPL and UPBD?
Digital Turbine's ROIC % of 7.30% can be compared against companies in the Software industry. The industry median ROIC % is 3.11. Digital Turbine's value of 7.30% is 135.1% 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 ROIC % for a Software company?
The median ROIC % among Software companies is 3.11, 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. Digital Turbine's current ROIC % of 7.30% is 135.1% 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 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 Digital Turbine and its competitors. For the Software industry, the median ROIC % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Turbine's current ROIC % is 7.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Turbine stock overvalued right now?
Based on GuruFocus' analysis, Digital Turbine (APPS) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.32, compared to a current price of $10.14 — trading 134.7% above its estimated fair value. The current ROIC % is 7.30% and 135.1% above the Software industry median of 3.11. Digital Turbine's overall GF Score™ is 51/100 with 6 warning signs 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 Digital Turbine (APPS), the current ROIC % is 7.30% 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 Digital Turbine (APPS) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Turbine stock appears to be overvalued.
The current stock price of $10.14 is trading 134.7% above its estimated GF Value™ of $4.32.
GuruFocus considers Digital Turbine to be Significantly Overvalued.
Key valuation signals for APPS:
ROIC %: 7.30%
GF Value™: $4.32 vs. price of $10.14 (134.7% above fair value)
Industry Position: 135.1% above the Software median
No single metric tells the full story. See the APPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Turbine Inc is an independent mobile growth platform that levels up the landscape for advertisers, publishers, carriers, and device original equipment manufacturers. The Company offers end-to-end products and solutions leveraging proprietary technology to all participants in the mobile application ecosystem, enabling brand discovery and advertising, user acquisition and engagement, and operational efficiency for advertisers. In addition, its products and solutions provide monetization opportunities for OEMs, carriers, and application (app or apps) publishers and developers.
51GF Score
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