ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. EDU Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 45.97%.
As of today (2026-06-28), EDU Holdings's WACC % is 8.75%. EDU Holdings's ROIC % is 34.38% (calculated using TTM income statement data).
EDU Holdings 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.
EDU Holdings (ASX:EDU) 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, EDU Holdings's WACC % is 8.75%. EDU Holdings's ROIC % is 34.38% (calculated using TTM income statement data).
EDU Holdings 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 %, 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.
EDU Holdings ROIC % Related Terms
EDU Holdings ROIC % Historical Data
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The historical data trend for EDU Holdings'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 Education & Training Services subindustry, EDU Holdings'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.
EDU Holdings ROIC % vs Education Industry
For the Education industry and Consumer Defensive sector, EDU Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where EDU Holdings's ROIC % falls into.
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.
EDU Holdings (ASX:EDU) has a ROIC % of 45.97% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on EDU Holdings and its competitors.
Is EDU Holdings' ROIC % too high?
EDU Holdings' current ROIC % is 45.97%. The Education industry median ROIC % is 4.97. EDU Holdings' value of 45.97% is 824.9% above this industry median. Overall, EDU Holdings has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does EDU Holdings' ROIC % compare to EDU and TAL?
EDU Holdings' ROIC % of 45.97% can be compared against companies in the Education industry. The industry median ROIC % is 4.97. EDU Holdings' value of 45.97% is 824.9% 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 an Education company?
The median ROIC % among Education companies is 4.97, based on 258 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. EDU Holdings's current ROIC % of 45.97% is 824.9% 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 EDU Holdings and its competitors. For the Education industry, the median ROIC % is 4.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EDU Holdings's current ROIC % is 45.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EDU Holdings stock overvalued right now?
Based on GuruFocus' analysis, EDU Holdings (ASX:EDU) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.73, compared to a current price of A$1.03 — trading 41.1% above its estimated fair value. The current ROIC % is 45.97% and 824.9% above the Education industry median of 4.97. EDU Holdings' overall GF Score™ is 61/100 with 1 warning sign 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 EDU Holdings (ASX:EDU), the current ROIC % is 45.97% 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 EDU Holdings (ASX:EDU) Overvalued in 2026?
Based on GuruFocus' analysis, EDU Holdings stock appears to be overvalued.
The current stock price of A$1.03 is trading 41.1% above its estimated GF Value™ of A$0.73.
GuruFocus considers EDU Holdings to be Significantly Overvalued.
Key valuation signals for ASX:EDU:
ROIC %: 45.97%
GF Value™: A$0.73 vs. price of A$1.03 (41.1% above fair value)
Industry Position: 824.9% above the Education median
No single metric tells the full story. See the ASX:EDU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EDU Holdings Ltd is engaged in the provision of tertiary education services. The Group operates in two segments, being Ikon (the provision of higher education to both domestic and international students) and ALG (the provision of vocational education to international students), and in one geographical segment, being Australia. The company offers a diverse range of qualifications, from certificate III entry-level courses to professional master's degrees.
61GF Score
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