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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 %. Xchanging Solutions's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 28.45%.
As of today (2026-07-14), Xchanging Solutions's WACC % is 18.33%. Xchanging Solutions's ROIC % is 25.95% (calculated using TTM income statement data).
Xchanging Solutions 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.
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, Xchanging Solutions's WACC % is 18.33%. Xchanging Solutions's ROIC % is 25.95% (calculated using TTM income statement data).
Xchanging Solutions 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.
Xchanging Solutions ROIC % Related Terms
Xchanging Solutions ROIC % Historical Data
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The historical data trend for Xchanging Solutions'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 Information Technology Services subindustry, Xchanging Solutions'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.
Xchanging Solutions ROIC % vs Software Industry
For the Software industry and Technology sector, Xchanging Solutions's ROIC % distribution charts can be found below:
* The bar in red indicates where Xchanging Solutions'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.
Xchanging Solutions (BOM:532616) has a ROIC % of 28.45% 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 Xchanging Solutions and its competitors.
Is Xchanging Solutions' ROIC % too high?
Xchanging Solutions' current ROIC % is 28.45%. The Software industry median ROIC % is 3.09. Xchanging Solutions' value of 28.45% is 820.7% above this industry median. Overall, Xchanging Solutions has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Xchanging Solutions' ROIC % compare to IBM and ACN?
Xchanging Solutions' ROIC % of 28.45% can be compared against companies in the Software industry. The industry median ROIC % is 3.09. Xchanging Solutions' value of 28.45% is 820.7% 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 3.09, based on 2,829 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. Xchanging Solutions's current ROIC % of 28.45% is 820.7% 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 Xchanging Solutions and its competitors. For the Software industry, the median ROIC % is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xchanging Solutions's current ROIC % is 28.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xchanging Solutions stock overvalued right now?
Based on GuruFocus' analysis, Xchanging Solutions (BOM:532616) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹111.18, compared to a current price of ₹64.99 — trading 41.5% below its estimated fair value. The current ROIC % is 28.45% and 820.7% above the Software industry median of 3.09. Xchanging Solutions' overall GF Score™ is 71/100. 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 Xchanging Solutions (BOM:532616), the current ROIC % is 28.45% 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 Xchanging Solutions (BOM:532616) Overvalued in 2026?
Based on GuruFocus' analysis, Xchanging Solutions stock appears to be undervalued.
The current stock price of ₹64.99 is trading 41.5% below its estimated GF Value™ of ₹111.18.
GuruFocus considers Xchanging Solutions to be Significantly Undervalued.
Key valuation signals for BOM:532616:
ROIC %: 28.45%
GF Value™: ₹111.18 vs. price of ₹64.99 (41.5% below fair value)
Industry Position: 820.7% above the Software median
No single metric tells the full story. See the BOM:532616 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xchanging Solutions Ltd is an Information Technology company. The company serves Healthcare, Life Sciences, Insurance, Travel, Transportation and Hospitality, Banking and Capital Markets, Aerospace and Defense, Energy, Utilities, Oil and Gas, and others. Its services include Analytics, Application Services, Business Process Services, Cloud and Platform Services, Consulting, Enterprise and Cloud Apps, Internet of Things (IoT), Security, and others. Geographically, it derives a majority of its revenue from the USA and also has a presence in Europe, India, Singapore, and the Rest of the World.
71GF Score
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