ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Per Aarsleff Holding AS's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 7.51%.
As of today (2026-07-01), Per Aarsleff Holding AS's WACC % is 2.81%. Per Aarsleff Holding AS's ROIC % is 9.72% (calculated using TTM income statement data).
Per Aarsleff Holding AS 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.
Per Aarsleff Holding AS (FRA:PE9) 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, Per Aarsleff Holding AS's WACC % is 2.81%. Per Aarsleff Holding AS's ROIC % is 9.72% (calculated using TTM income statement data).
Per Aarsleff Holding AS 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.
* 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 Engineering & Construction subindustry, Per Aarsleff Holding AS'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.
Per Aarsleff Holding AS ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Per Aarsleff Holding AS's ROIC % distribution charts can be found below:
* The bar in red indicates where Per Aarsleff Holding AS'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.
Per Aarsleff Holding AS (FRA:PE9) has a ROIC % of 7.51% 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 Per Aarsleff Holding AS and its competitors.
Is Per Aarsleff Holding AS's ROIC % too high?
Per Aarsleff Holding AS's current ROIC % is 7.51%. The Construction industry median ROIC % is 4.66. Per Aarsleff Holding AS's value of 7.51% is 61.2% above this industry median. Overall, Per Aarsleff Holding AS has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Per Aarsleff Holding AS's ROIC % compare to PWR and FIX?
Per Aarsleff Holding AS's ROIC % of 7.51% can be compared against companies in the Construction industry. The industry median ROIC % is 4.66. Per Aarsleff Holding AS's value of 7.51% is 61.2% 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 Construction company?
The median ROIC % among Construction companies is 4.66, based on 1,750 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. Per Aarsleff Holding AS's current ROIC % of 7.51% is 61.2% 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 Per Aarsleff Holding AS and its competitors. For the Construction industry, the median ROIC % is 4.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Per Aarsleff Holding AS's current ROIC % is 7.51%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Per Aarsleff Holding AS stock overvalued right now?
Based on GuruFocus' analysis, Per Aarsleff Holding AS (FRA:PE9) is currently considered Significantly Overvalued. The stock's GF Value™ is €69.84, compared to a current price of €99.10 — trading 41.9% above its estimated fair value. The current ROIC % is 7.51% and 61.2% above the Construction industry median of 4.66. Per Aarsleff Holding AS's overall GF Score™ is 83/100 with 1 warning sign 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 Per Aarsleff Holding AS (FRA:PE9), the current ROIC % is 7.51% 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 Per Aarsleff Holding AS (FRA:PE9) Overvalued in 2026?
Based on GuruFocus' analysis, Per Aarsleff Holding AS stock appears to be overvalued.
The current stock price of €99.10 is trading 41.9% above its estimated GF Value™ of €69.84.
GuruFocus considers Per Aarsleff Holding AS to be Significantly Overvalued.
Key valuation signals for FRA:PE9:
ROIC %: 7.51%
GF Value™: €69.84 vs. price of €99.10 (41.9% above fair value)
Industry Position: 61.2% above the Construction median
No single metric tells the full story. See the FRA:PE9 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Per Aarsleff Holding AS is a Denmark-based holding company specializing in infrastructure and construction services. It has Construction, Pipe technologies, Technical Solutions, Rail, and Ground engineering segments. The construction segment consists of construction, shell structures, building construction and international projects. The pipe technologies segment covers utility companies, housing, industry, export, and manufacturing. The ground engineering segment comprises ground engineering, pile factories, and engineering. The rail segment comprises train station services, service center operations, and maintenance projects. It derives maximum revenue from the Construction segment. Geographically, the company has a business presence in Denmark and other countries.
83GF Score
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