ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Tongcheng Travel Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 11.70%.
As of today (2026-06-29), Tongcheng Travel Holdings's WACC % is 9.37%. Tongcheng Travel Holdings's ROIC % is 11.63% (calculated using TTM income statement data).
Tongcheng Travel Holdings 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.
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, Tongcheng Travel Holdings's WACC % is 9.37%. Tongcheng Travel Holdings's ROIC % is 11.63% (calculated using TTM income statement data).
Tongcheng Travel Holdings 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 Travel Services subindustry, Tongcheng Travel Holdings'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.
Tongcheng Travel Holdings ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Tongcheng Travel Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Tongcheng Travel Holdings'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.
Tongcheng Travel Holdings (FRA:TEM) has a ROIC % of 11.70% 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 Tongcheng Travel Holdings and its competitors.
Is Tongcheng Travel Holdings' ROIC % too high?
Tongcheng Travel Holdings' current ROIC % is 11.70%. The Travel & Leisure industry median ROIC % is 3.76. Tongcheng Travel Holdings' value of 11.70% is 211.2% above this industry median. Overall, Tongcheng Travel Holdings has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tongcheng Travel Holdings' ROIC % compare to BKNG and ABNB?
Tongcheng Travel Holdings' ROIC % of 11.70% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.76. Tongcheng Travel Holdings' value of 11.70% is 211.2% 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 Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.76, based on 835 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. Tongcheng Travel Holdings's current ROIC % of 11.70% is 211.2% 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 Tongcheng Travel Holdings and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tongcheng Travel Holdings's current ROIC % is 11.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongcheng Travel Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tongcheng Travel Holdings (FRA:TEM) is currently considered Possible Value Trap. The stock's GF Value™ is €2.76, compared to a current price of €1.34 — trading 51.4% below its estimated fair value. The current ROIC % is 11.70% and 211.2% above the Travel & Leisure industry median of 3.76. Tongcheng Travel Holdings' overall GF Score™ is 77/100 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 Tongcheng Travel Holdings (FRA:TEM), the current ROIC % is 11.70% 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 Tongcheng Travel Holdings (FRA:TEM) Overvalued in 2026?
Based on GuruFocus' analysis, Tongcheng Travel Holdings stock appears to be undervalued.
The current stock price of €1.34 is trading 51.4% below its estimated GF Value™ of €2.76.
GuruFocus considers Tongcheng Travel Holdings to be Possible Value Trap.
Key valuation signals for FRA:TEM:
ROIC %: 11.70%
GF Value™: €2.76 vs. price of €1.34 (51.4% below fair value)
Industry Position: 211.2% above the Travel & Leisure median
No single metric tells the full story. See the FRA:TEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tongcheng Travel is an online travel agency platform that provides booking services for hotel and ticketing in China. It generated 84% of its revenue from accommodation reservations and transportation ticketing in 2023. The rest came from advertising and in-house software sales. The platform provides both online and offline services in the form of call centers and travel kiosks. Tongcheng Travel was formed from the merger of Tongcheng Network and eLong in 2018. It is currently 21.38% owned by Tencent and 20.86% by Trip.com. Tongcheng targets lower-tier cities and as of 2021, 86.7% of its users are from non-first-tier cities in China and 61.7% of new paying users on Weixin were from Tier 3 or below cities in China. The company competes with Trip.com, Alibaba's Fliggy, and Meituan.
77GF Score
Get the complete analysis for FRA:TEM
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:TEM has been successfully added to your 
