ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Vail Resorts's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2026 was 27.79%.
As of today (2026-07-03), Vail Resorts's WACC % is 6.60%. Vail Resorts's ROIC % is 5.46% (calculated using TTM income statement data).
Vail Resorts earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Vail Resorts (FRA:VAI) 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, Vail Resorts's WACC % is 6.60%. Vail Resorts's ROIC % is 5.46% (calculated using TTM income statement data).
Vail Resorts 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.
Vail Resorts ROIC % Related Terms
Vail Resorts ROIC % Historical Data
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The historical data trend for Vail Resorts'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 Resorts & Casinos subindustry, Vail Resorts'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.
Vail Resorts ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Vail Resorts's ROIC % distribution charts can be found below:
* The bar in red indicates where Vail Resorts'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.
Vail Resorts (FRA:VAI) has a ROIC % of 27.79% 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 Vail Resorts and its competitors.
Is Vail Resorts' ROIC % too high?
Vail Resorts' current ROIC % is 27.79%. The Travel & Leisure industry median ROIC % is 3.76. Vail Resorts' value of 27.79% is 639.1% above this industry median. Overall, Vail Resorts has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vail Resorts' ROIC % compare to HGV and RRR?
Vail Resorts' ROIC % of 27.79% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.76. Vail Resorts' value of 27.79% is 639.1% 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 832 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. Vail Resorts's current ROIC % of 27.79% is 639.1% 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 Vail Resorts 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. Vail Resorts's current ROIC % is 27.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vail Resorts stock overvalued right now?
Based on GuruFocus' analysis, Vail Resorts (FRA:VAI) is currently considered Modestly Undervalued. The stock's GF Value™ is €151.67, compared to a current price of €118.00 — trading 22.2% below its estimated fair value. The current ROIC % is 27.79% and 639.1% above the Travel & Leisure industry median of 3.76. Vail Resorts' overall GF Score™ is 70/100 with 5 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 Vail Resorts (FRA:VAI), the current ROIC % is 27.79% 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 Vail Resorts (FRA:VAI) Overvalued in 2026?
Based on GuruFocus' analysis, Vail Resorts stock appears to be undervalued.
The current stock price of €118.00 is trading 22.2% below its estimated GF Value™ of €151.67.
GuruFocus considers Vail Resorts to be Modestly Undervalued.
Key valuation signals for FRA:VAI:
ROIC %: 27.79%
GF Value™: €151.67 vs. price of €118.00 (22.2% below fair value)
Industry Position: 639.1% above the Travel & Leisure median
No single metric tells the full story. See the FRA:VAI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vail Resorts Inc Bhd is a resorts and casinos company that operates mountain resorts and ski areas. The company has three business segments that include Mountain, Lodging, and Real Estate. The Mountain segment operates numerous ski resort properties that offer a variety of winter and summer activities, such as skiing, snowboarding, snowshoeing, hiking, and mountain biking. The Lodging segment owns and operates hotels and condominiums. The Real Estate segment owns, develops, and leases real estate, typically near its other properties. The company generates the vast majority of its revenue within the United States.
70GF Score
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