ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Bio-Rad Laboratories's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.26%.
As of today (2026-07-08), Bio-Rad Laboratories's WACC % is 10.19%. Bio-Rad Laboratories's ROIC % is 2.14% (calculated using TTM income statement data).
Bio-Rad Laboratories earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Bio-Rad Laboratories's WACC % is 10.19%. Bio-Rad Laboratories's ROIC % is 2.14% (calculated using TTM income statement data).
Bio-Rad Laboratories 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 Medical Devices subindustry, Bio-Rad Laboratories'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.
Bio-Rad Laboratories ROIC % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Bio-Rad Laboratories's ROIC % distribution charts can be found below:
* The bar in red indicates where Bio-Rad Laboratories'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.
Bio-Rad Laboratories (BIO) has a ROIC % of 1.26% 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 Bio-Rad Laboratories and its competitors.
Is Bio-Rad Laboratories' ROIC % too high?
Bio-Rad Laboratories' current ROIC % is 1.26%. The Medical Devices & Instruments industry median ROIC % is 1.26. Bio-Rad Laboratories' value of 1.26% is 0% at this industry median. Overall, Bio-Rad Laboratories has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bio-Rad Laboratories' ROIC % compare to GKOS and BRKR?
Bio-Rad Laboratories' ROIC % of 1.26% can be compared against companies in the Medical Devices & Instruments industry. The industry median ROIC % is 1.26. Bio-Rad Laboratories' value of 1.26% is 0% at 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 Medical Devices & Instruments company?
The median ROIC % among Medical Devices & Instruments companies is 1.26, based on 845 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. Bio-Rad Laboratories's current ROIC % of 1.26% is 0% at 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 Bio-Rad Laboratories and its competitors. For the Medical Devices & Instruments industry, the median ROIC % is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bio-Rad Laboratories's current ROIC % is 1.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bio-Rad Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Bio-Rad Laboratories (BIO) is currently considered Modestly Undervalued. The stock's GF Value™ is $317.96, compared to a current price of $284.30 — trading 10.6% below its estimated fair value. The current ROIC % is 1.26% and 0% at the Medical Devices & Instruments industry median of 1.26. Bio-Rad Laboratories' overall GF Score™ is 72/100 with 5 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 Bio-Rad Laboratories (BIO), the current ROIC % is 1.26% 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 Bio-Rad Laboratories (BIO) Overvalued in 2026?
Based on GuruFocus' analysis, Bio-Rad Laboratories stock appears to be undervalued.
The current stock price of $284.30 is trading 10.6% below its estimated GF Value™ of $317.96.
GuruFocus considers Bio-Rad Laboratories to be Modestly Undervalued.
Key valuation signals for BIO:
ROIC %: 1.26%
GF Value™: $317.96 vs. price of $284.30 (10.6% below fair value)
Industry Position: 0% at the Medical Devices & Instruments median
No single metric tells the full story. See the BIO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bio-Rad Laboratories, headquartered in Hercules, California, develops, manufactures, and sells products and solutions for the clinical diagnostics and life sciences markets. In clinical diagnostics (60% of sales), Bio-Rad sells test systems and specialized quality controls for clinical laboratories. In life sciences (40% of sales), it develops and manufactures instruments and reagents used in research, biopharmaceutical production, and food testing and has a leadership position in dPCR technology. The company is geographically diverse, with major markets in the Americas (about 40% of sales), Europe (about 30%), Asia (about 30%), and other. Bio-Rad owns approximately 33% of Sartorius, a lab and bioprocessing supplier that specializes in single-use technology used in biologics manufacturing.
72GF Score
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