ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Eurazeo SE's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -1.25%.
As of today (2026-06-25), Eurazeo SE's WACC % is 9.78%. Eurazeo SE's ROIC % is -3.36% (calculated using TTM income statement data).
Eurazeo SE earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Eurazeo SE (OTCPK:EUZOF) 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, Eurazeo SE's WACC % is 9.78%. Eurazeo SE's ROIC % is -3.36% (calculated using TTM income statement data).
Eurazeo SE 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.
Eurazeo SE ROIC % Related Terms
Eurazeo SE ROIC % Historical Data
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The historical data trend for Eurazeo SE'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 Asset Management subindustry, Eurazeo SE'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.
Eurazeo SE ROIC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Eurazeo SE's ROIC % distribution charts can be found below:
* The bar in red indicates where Eurazeo SE'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.
Eurazeo SE (EUZOF) has a ROIC % of -1.25% 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 Eurazeo SE and its competitors.
Is Eurazeo SE's ROIC % too high?
Eurazeo SE's current ROIC % is -1.25%. Overall, Eurazeo SE has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Eurazeo SE's ROIC % compare to BLK and BX?
Eurazeo SE's ROIC % of -1.25% can be compared against companies in the Asset Management industry. The industry median ROIC % is 1.20. 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 1.20, based on 710 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. 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 Eurazeo SE and its competitors. For the Asset Management industry, the median ROIC % is 1.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eurazeo SE's current ROIC % is -1.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eurazeo SE stock overvalued right now?
Based on GuruFocus' analysis, Eurazeo SE (EUZOF) is currently considered Possible Value Trap. The stock's GF Value™ is $77.02, compared to a current price of $46.00 — trading 40.3% below its estimated fair value. The current ROIC % is -1.25%. Eurazeo SE's overall GF Score™ is 64/100 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 Eurazeo SE (EUZOF), the current ROIC % is -1.25% 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 Eurazeo SE (EUZOF) Overvalued in 2026?
Based on GuruFocus' analysis, Eurazeo SE stock appears to be undervalued.
The current stock price of $46.00 is trading 40.3% below its estimated GF Value™ of $77.02.
GuruFocus considers Eurazeo SE to be Possible Value Trap.
Key valuation signals for EUZOF:
ROIC %: -1.25%
GF Value™: $77.02 vs. price of $46.00 (40.3% below fair value)
No single metric tells the full story. See the EUZOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eurazeo SE is an investment holding company operating as a conglomerate of four private equity segments. The company makes investments across a diverse array of industries and asset sizes, mostly in Europe. Eurazeo Capital, the company's greatest revenue contributor, makes investments in medium and large-sized companies above a certain asset threshold. Its other divisions consist of investments in small- and medium-sized companies, provide growth capital to smaller-sized enterprises, and make investments in real assets. The company is increasingly expanding into the Chinese, Brazilian, and American markets. Eurazeo measures performance by changes in net asset value.
64GF Score
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