ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Vanta Bioscience's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.31%.
As of today (2026-07-12), Vanta Bioscience's WACC % is 5.13%. Vanta Bioscience's ROIC % is 0.91% (calculated using TTM income statement data).
Vanta Bioscience earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Vanta Bioscience (BOM:540729) 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, Vanta Bioscience's WACC % is 5.13%. Vanta Bioscience's ROIC % is 0.91% (calculated using TTM income statement data).
Vanta Bioscience 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.
Vanta Bioscience ROIC % Related Terms
Vanta Bioscience ROIC % Historical Data
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The historical data trend for Vanta Bioscience'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 Diagnostics & Research subindustry, Vanta Bioscience'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.
Vanta Bioscience ROIC % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Vanta Bioscience's ROIC % distribution charts can be found below:
* The bar in red indicates where Vanta Bioscience's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Vanta Bioscience (BOM:540729) has a ROIC % of 5.31% 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 Vanta Bioscience and its competitors.
Is Vanta Bioscience's ROIC % too high?
Vanta Bioscience's current ROIC % is 5.31%. Overall, Vanta Bioscience has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vanta Bioscience's ROIC % compare to TMO and DHR?
Vanta Bioscience's ROIC % of 5.31% can be compared against companies in the Medical Diagnostics & Research industry. 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 Diagnostics & Research company?
A good ROIC % depends on the Medical Diagnostics & Research industry context. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Vanta Bioscience and its competitors. Vanta Bioscience's current ROIC % is 5.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vanta Bioscience stock overvalued right now?
Based on GuruFocus' analysis, Vanta Bioscience (BOM:540729) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹12.03, compared to a current price of ₹25.29 — trading 110.2% above its estimated fair value. The current ROIC % is 5.31%. Vanta Bioscience's overall GF Score™ is 57/100 with 10 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 Vanta Bioscience (BOM:540729), the current ROIC % is 5.31% 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 Vanta Bioscience (BOM:540729) Overvalued in 2026?
Based on GuruFocus' analysis, Vanta Bioscience stock appears to be overvalued.
The current stock price of ₹25.29 is trading 110.2% above its estimated GF Value™ of ₹12.03.
GuruFocus considers Vanta Bioscience to be Significantly Overvalued.
Key valuation signals for BOM:540729:
ROIC %: 5.31%
GF Value™: ₹12.03 vs. price of ₹25.29 (110.2% above fair value)
No single metric tells the full story. See the BOM:540729 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vanta Bioscience Ltd is a full-service preclinical contract research organization based in Chennai, India, providing preclinical safety assessment services for the pharmaceutical, medical devices, nutraceuticals, biotech, agrochemicals, cosmetics, chemical, and feed additive industries. Established as a center of excellence in GLP-compliant toxicology and safety assessment, the company supports clients through toxicology studies, batch release tests, biocompatibility evaluations, agro-chemical and chemical safety assessments, and diet formulation services. It also offers testing and contract research services in clinical and pre-clinical research, biopharma studies, analytical testing, and environmental assessments.
57GF Score
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