ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Experience Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 2.84%.
As of today (2026-06-24), Experience Co's WACC % is 2.52%. Experience Co's ROIC % is 0.37% (calculated using TTM income statement data).
Experience Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Experience Co (ASX:EXP) 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, Experience Co's WACC % is 2.52%. Experience Co's ROIC % is 0.37% (calculated using TTM income statement data).
Experience Co 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.
Experience Co ROIC % Related Terms
Experience Co ROIC % Historical Data
* Premium members only.
The historical data trend for Experience Co'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 Leisure subindustry, Experience Co'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.
Experience Co ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Experience Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Experience Co'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.
Experience Co (ASX:EXP) has a ROIC % of 2.84% 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 Experience Co and its competitors.
Is Experience Co's ROIC % too high?
Experience Co's current ROIC % is 2.84%. The Travel & Leisure industry median ROIC % is 3.74. Experience Co's value of 2.84% is 24.1% below this industry median.
How does Experience Co's ROIC % compare to AS and HAS?
Experience Co's ROIC % of 2.84% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.74. Experience Co's value of 2.84% is 24.1% below 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 Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.74, based on 833 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. Experience Co's current ROIC % of 2.84% is 24.1% below 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 Experience Co and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Experience Co's current ROIC % is 2.84%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Experience Co stock overvalued right now?
Based on GuruFocus' analysis, Experience Co (ASX:EXP) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.16, compared to a current price of A$0.07 — trading 53.8% below its estimated fair value. The current ROIC % is 2.84% and 24.1% below the Travel & Leisure industry median of 3.74. 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 Experience Co (ASX:EXP), the current ROIC % is 2.84% 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.
Experience Co Ltd operates as an adventure tourism company that engages in the provision of adventure tourism and leisure experiences to the public. The firm offers sky-diving, island day trips, reef tours, rainforest tours, and multi-day experiences in Australia and New Zealand. The company segment includes Skydiving, Adventure Experiences and Corporate. The company generates the majority of its revenue from the Adventure Experiences segment. Geographically the company generates the majority from Australia.
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