ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Vista Group International's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 7.62%.
As of today (2026-06-26), Vista Group International's WACC % is 15.67%. Vista Group International's ROIC % is 1.88% (calculated using TTM income statement data).
Vista Group International earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Vista Group International (ASX:VGL) 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, Vista Group International's WACC % is 15.67%. Vista Group International's ROIC % is 1.88% (calculated using TTM income statement data).
Vista Group International 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.
* 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, Vista Group International'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.
Vista Group International ROIC % vs Software Industry
For the Software industry and Technology sector, Vista Group International's ROIC % distribution charts can be found below:
* The bar in red indicates where Vista Group International'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.
Vista Group International (ASX:VGL) has a ROIC % of 7.62% 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 Vista Group International and its competitors.
Is Vista Group International's ROIC % too high?
Vista Group International's current ROIC % is 7.62%. The Software industry median ROIC % is 3.11. Vista Group International's value of 7.62% is 145.4% above this industry median. Overall, Vista Group International has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vista Group International's ROIC % compare to CRM and SHOP?
Vista Group International's ROIC % of 7.62% can be compared against companies in the Software industry. The industry median ROIC % is 3.11. Vista Group International's value of 7.62% is 145.4% 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 2,830 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. Vista Group International's current ROIC % of 7.62% is 145.4% 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 Vista Group International 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. Vista Group International's current ROIC % is 7.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vista Group International stock overvalued right now?
Based on GuruFocus' analysis, Vista Group International (ASX:VGL) is currently considered Modestly Undervalued. The stock's GF Value™ is A$2.29, compared to a current price of A$2.00 — trading 12.7% below its estimated fair value. The current ROIC % is 7.62% and 145.4% above the Software industry median of 3.11. Vista Group International's overall GF Score™ is 83/100 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 Vista Group International (ASX:VGL), the current ROIC % is 7.62% 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 Vista Group International (ASX:VGL) Overvalued in 2026?
Based on GuruFocus' analysis, Vista Group International stock appears to be undervalued.
The current stock price of A$2.00 is trading 12.7% below its estimated GF Value™ of A$2.29.
GuruFocus considers Vista Group International to be Modestly Undervalued.
Key valuation signals for ASX:VGL:
ROIC %: 7.62%
GF Value™: A$2.29 vs. price of A$2.00 (12.7% below fair value)
Industry Position: 145.4% above the Software median
No single metric tells the full story. See the ASX:VGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vista Group International Ltd provides software and technology solutions across the global film industry sectors of distribution, exhibition, and the end consumer, moviegoers. The principal activity is the sale, support, and associated development of software for the film industry. The company operates in the vertical cinema/film market in the following reportable segments namely the Cinema segment and Film segment. The company has offices in New Zealand, with additional offices located in Sydney, Cape Town, London, Amsterdam, Beijing, Shanghai, Kuala Lumpur, Los Angeles, and Mexico City.
83GF Score
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