ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. City of London Investment Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 14.52%.
As of today (2026-07-07), City of London Investment Group's WACC % is 5.62%. City of London Investment Group's ROIC % is 14.04% (calculated using TTM income statement data).
City of London Investment Group 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.
City of London Investment Group (CHIX:CLIGl) 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, City of London Investment Group's WACC % is 5.62%. City of London Investment Group's ROIC % is 14.04% (calculated using TTM income statement data).
City of London Investment Group 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.
City of London Investment Group ROIC % Related Terms
City of London Investment Group ROIC % Historical Data
* 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 Asset Management subindustry, City of London Investment Group'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.
City of London Investment Group ROIC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, City of London Investment Group's ROIC % distribution charts can be found below:
* The bar in red indicates where City of London Investment Group's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) 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.
City of London Investment Group (CHIX:CLIGL) has a ROIC % of 14.52% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on City of London Investment Group and its competitors.
Is City of London Investment Group's ROIC % too high?
City of London Investment Group's current ROIC % is 14.52%. The Asset Management industry median ROIC % is 1.21. City of London Investment Group's value of 14.52% is 1100% above this industry median. Overall, City of London Investment Group has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does City of London Investment Group's ROIC % compare to BLK and BX?
City of London Investment Group's ROIC % of 14.52% can be compared against companies in the Asset Management industry. The industry median ROIC % is 1.21. City of London Investment Group's value of 14.52% is 1100% 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 an Asset Management company?
The median ROIC % among Asset Management companies is 1.21, based on 711 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. City of London Investment Group's current ROIC % of 14.52% is 1100% 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 City of London Investment Group and its competitors. For the Asset Management industry, the median ROIC % is 1.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. City of London Investment Group's current ROIC % is 14.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is City of London Investment Group stock overvalued right now?
Based on GuruFocus' analysis, City of London Investment Group (CHIX:CLIGL) is currently considered Modestly Undervalued. The stock's GF Value™ is £5.11, compared to a current price of £4.55 — trading 11% below its estimated fair value. The current ROIC % is 14.52% and 1100% above the Asset Management industry median of 1.21. City of London Investment Group's overall GF Score™ is 87/100 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 City of London Investment Group (CHIX:CLIGL), the current ROIC % is 14.52% as of Dec. 2025. 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 City of London Investment Group (CHIX:CLIGL) Overvalued in 2026?
Based on GuruFocus' analysis, City of London Investment Group stock appears to be undervalued.
The current stock price of £4.55 is trading 11% below its estimated GF Value™ of £5.11.
GuruFocus considers City of London Investment Group to be Modestly Undervalued.
Key valuation signals for CHIX:CLIGL:
ROIC %: 14.52%
GF Value™: £5.11 vs. price of £4.55 (11% below fair value)
Industry Position: 1100% above the Asset Management median
No single metric tells the full story. See the CHIX:CLIGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
City of London Investment Group Business Description
City of London Investment Group PLC is a United Kingdom-based asset management company. The company through its subsidiaries offers products of emerging markets and closed-end funds. Its principal operating subsidiary acts as an investment adviser for the company. It has operations in the United States, Canada, the United Kingdom, and Europe.
87GF Score
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