ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Bursa Malaysia Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 55.49%.
As of today (2026-06-26), Bursa Malaysia Bhd's WACC % is 9.08%. Bursa Malaysia Bhd's ROIC % is 45.52% (calculated using TTM income statement data).
Bursa Malaysia Bhd 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.
Bursa Malaysia Bhd (OTCPK:BSMAF) 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, Bursa Malaysia Bhd's WACC % is 9.08%. Bursa Malaysia Bhd's ROIC % is 45.52% (calculated using TTM income statement data).
Bursa Malaysia Bhd 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.
Bursa Malaysia Bhd ROIC % Related Terms
Bursa Malaysia Bhd ROIC % Historical Data
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The historical data trend for Bursa Malaysia Bhd'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 Financial Data & Stock Exchanges subindustry, Bursa Malaysia Bhd'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.
Bursa Malaysia Bhd ROIC % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Bursa Malaysia Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where Bursa Malaysia Bhd'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.
Bursa Malaysia Bhd (BSMAF) has a ROIC % of 55.49% 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 Bursa Malaysia Bhd and its competitors.
Is Bursa Malaysia Bhd's ROIC % too high?
Bursa Malaysia Bhd's current ROIC % is 55.49%. The Capital Markets industry median ROIC % is 1.23. Bursa Malaysia Bhd's value of 55.49% is 4429.8% above this industry median. Overall, Bursa Malaysia Bhd has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bursa Malaysia Bhd's ROIC % compare to SPGI and CME?
Bursa Malaysia Bhd's ROIC % of 55.49% can be compared against companies in the Capital Markets industry. The industry median ROIC % is 1.23. Bursa Malaysia Bhd's value of 55.49% is 4429.8% 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 Capital Markets company?
The median ROIC % among Capital Markets companies is 1.23, based on 694 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. Bursa Malaysia Bhd's current ROIC % of 55.49% is 4429.8% 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 Bursa Malaysia Bhd and its competitors. For the Capital Markets industry, the median ROIC % is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bursa Malaysia Bhd's current ROIC % is 55.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bursa Malaysia Bhd stock overvalued right now?
Based on GuruFocus' analysis, Bursa Malaysia Bhd (BSMAF) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.42, compared to a current price of $2.18 — trading 53.5% above its estimated fair value. The current ROIC % is 55.49% and 4429.8% above the Capital Markets industry median of 1.23. Bursa Malaysia Bhd's overall GF Score™ is 73/100 with 8 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 Bursa Malaysia Bhd (BSMAF), the current ROIC % is 55.49% 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 Bursa Malaysia Bhd (BSMAF) Overvalued in 2026?
Based on GuruFocus' analysis, Bursa Malaysia Bhd stock appears to be overvalued.
The current stock price of $2.18 is trading 53.5% above its estimated GF Value™ of $1.42.
GuruFocus considers Bursa Malaysia Bhd to be Significantly Overvalued.
Key valuation signals for BSMAF:
ROIC %: 55.49%
GF Value™: $1.42 vs. price of $2.18 (53.5% above fair value)
Industry Position: 4429.8% above the Capital Markets median
No single metric tells the full story. See the BSMAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bursa Malaysia Bhd operates as an exchange holding company, whose principal activities are treasury management and the provision of management and administrative services to its subsidiaries. Through its subsidiaries it operates the Malaysian securities, derivatives, multi-environment product market, debt fundraising and offshore financial exchanges and the Shariah-compliant commodity and precious metals trading platform, to operate the related clearing houses, depository function and regulatory function, and to disseminate information relating to instruments quoted on the exchanges. Its six segments include: Securities Market, Derivatives Market, Islamic Market, Data Business, Exchange, Holding Company, and Others, of which Securities Market segment derives maximum revenue.
73GF Score
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