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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Asia Aviation PCL's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 9.34%.
As of today (2026-07-17), Asia Aviation PCL's WACC % is 6.67%. Asia Aviation PCL's ROIC % is 2.38% (calculated using TTM income statement data).
Asia Aviation PCL earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Asia Aviation PCL (BKK:AAV) 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, Asia Aviation PCL's WACC % is 6.67%. Asia Aviation PCL's ROIC % is 2.38% (calculated using TTM income statement data).
Asia Aviation PCL 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.
Asia Aviation PCL ROIC % Related Terms
Asia Aviation PCL ROIC % Historical Data
* Premium members only.
The historical data trend for Asia Aviation PCL'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 Airlines subindustry, Asia Aviation PCL'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.
Asia Aviation PCL ROIC % vs Transportation Industry
For the Transportation industry and Industrials sector, Asia Aviation PCL's ROIC % distribution charts can be found below:
* The bar in red indicates where Asia Aviation PCL'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.
Asia Aviation PCL (BKK:AAV) has a ROIC % of 9.34% 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 Asia Aviation PCL and its competitors.
Is Asia Aviation PCL's ROIC % too high?
Asia Aviation PCL's current ROIC % is 9.34%. The Transportation industry median ROIC % is 4.73. Asia Aviation PCL's value of 9.34% is 97.5% above this industry median. Overall, Asia Aviation PCL has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Asia Aviation PCL's ROIC % compare to DAL and UAL?
Asia Aviation PCL's ROIC % of 9.34% can be compared against companies in the Transportation industry. The industry median ROIC % is 4.73. Asia Aviation PCL's value of 9.34% is 97.5% 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 Transportation company?
The median ROIC % among Transportation companies is 4.73, based on 989 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. Asia Aviation PCL's current ROIC % of 9.34% is 97.5% 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 Asia Aviation PCL and its competitors. For the Transportation industry, the median ROIC % is 4.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Asia Aviation PCL's current ROIC % is 9.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asia Aviation PCL stock overvalued right now?
Based on GuruFocus' analysis, Asia Aviation PCL (BKK:AAV) is currently considered Possible Value Trap. The stock's GF Value™ is ฿2.18, compared to a current price of ฿1.07 — trading 50.9% below its estimated fair value. The current ROIC % is 9.34% and 97.5% above the Transportation industry median of 4.73. Asia Aviation PCL's overall GF Score™ is 65/100 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 Asia Aviation PCL (BKK:AAV), the current ROIC % is 9.34% 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 Asia Aviation PCL (BKK:AAV) Overvalued in 2026?
Based on GuruFocus' analysis, Asia Aviation PCL stock appears to be undervalued.
The current stock price of ฿1.07 is trading 50.9% below its estimated GF Value™ of ฿2.18.
GuruFocus considers Asia Aviation PCL to be Possible Value Trap.
Key valuation signals for BKK:AAV:
ROIC %: 9.34%
GF Value™: ฿2.18 vs. price of ฿1.07 (50.9% below fair value)
Industry Position: 97.5% above the Transportation median
No single metric tells the full story. See the BKK:AAV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressVibhavadee Rangsit Road, 3rd Floor, Central Office Building, Room No. 3200, 222, Don Mueang International Airport, Sanam Bin District, Don Mueang District, Bangkok, THA, 10210
Asia Aviation PCL is a holding company for Thai AirAsia Company Ltd that is engaged in investing in a low-fare airline business company. It has two reportable operating segments: Schedule flight operations and Chartered flight operations. The majority of the group's revenue is generated from the Schedule flight operations segment, which provides passenger air transportation services to routine destinations for scheduled flights. The group sells tickets through its distribution channels such as website, sales counter, travel agents, etc. The Chartered flight operations offer passenger air transportation services to non-routine destinations. Flights are operated when there is a booking from customers, normally tourist agency companies. Geographically, the group operates only in Thailand.
65GF Score
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