ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Barnes & Noble Education's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2026 was 7.88%.
As of today (2026-07-11), Barnes & Noble Education's WACC % is 27.31%. Barnes & Noble Education's ROIC % is 0.00% (calculated using TTM income statement data).
Barnes & Noble Education earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Barnes & Noble Education's WACC % is 27.31%. Barnes & Noble Education's ROIC % is 0.00% (calculated using TTM income statement data).
Barnes & Noble Education 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.
* 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 Specialty Retail subindustry, Barnes & Noble Education'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.
Barnes & Noble Education ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Barnes & Noble Education's ROIC % distribution charts can be found below:
* The bar in red indicates where Barnes & Noble Education's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Apr. 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.
Barnes & Noble Education (FRA:2BN0) has a ROIC % of 7.88% as of Apr. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Barnes & Noble Education and its competitors.
Is Barnes & Noble Education's ROIC % too high?
Barnes & Noble Education's current ROIC % is 7.88%. The Retail - Cyclical industry median ROIC % is 4.36. Barnes & Noble Education's value of 7.88% is 80.7% above this industry median. Overall, Barnes & Noble Education has a GF Score™ of 47/100, reflecting its overall financial health beyond just this single metric.
How does Barnes & Noble Education's ROIC % compare to BBW and BWMX?
Barnes & Noble Education's ROIC % of 7.88% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.36. Barnes & Noble Education's value of 7.88% is 80.7% 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 Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.36, based on 1,104 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. Barnes & Noble Education's current ROIC % of 7.88% is 80.7% 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 Barnes & Noble Education and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Barnes & Noble Education's current ROIC % is 7.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Barnes & Noble Education stock overvalued right now?
Barnes & Noble Education (FRA:2BN0) has a current ROIC % of 7.88%. The stock's GF Value™ is €2.03, compared to a current price of €10.40 — trading 412.3% above its estimated fair value. The current ROIC % is 7.88% and 80.7% above the Retail - Cyclical industry median of 4.36. Barnes & Noble Education's overall GF Score™ is 47/100 with 3 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 Barnes & Noble Education (FRA:2BN0), the current ROIC % is 7.88% as of Apr. 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 Barnes & Noble Education (FRA:2BN0) Overvalued in 2026?
Based on GuruFocus' analysis, Barnes & Noble Education stock appears to be overvalued.
The current stock price of €10.40 is trading 412.3% above its estimated GF Value™ of €2.03.
Key valuation signals for FRA:2BN0:
ROIC %: 7.88%
GF Value™: €2.03 vs. price of €10.40 (412.3% above fair value)
Industry Position: 80.7% above the Retail - Cyclical median
No single metric tells the full story. See the FRA:2BN0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Barnes & Noble Education Inc is a contract operator of physical and virtual bookstores for college and university campuses and K-12 institutions across the United States. The company is also a textbook wholesaler and inventory management hardware and software provider. It offers course materials through physical and online bookstores, including new and used print textbooks, rental options, digital textbooks, and publisher-hosted digital courseware. Products are also offered directly to students through Textbooks.com. The majority of the company's revenue is derived from the sale of products through its bookstore locations, including virtual bookstores, and the bookstore affiliated e-commerce websites.
47GF Score
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