ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. PT Gudang Garam Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 9.88%.
As of today (2026-06-26), PT Gudang Garam Tbk's WACC % is 6.61%. PT Gudang Garam Tbk's ROIC % is 4.83% (calculated using TTM income statement data).
PT Gudang Garam Tbk 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, PT Gudang Garam Tbk's WACC % is 6.61%. PT Gudang Garam Tbk's ROIC % is 4.83% (calculated using TTM income statement data).
PT Gudang Garam Tbk 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.
PT Gudang Garam Tbk ROIC % Related Terms
PT Gudang Garam Tbk ROIC % Historical Data
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The historical data trend for PT Gudang Garam Tbk'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 Tobacco subindustry, PT Gudang Garam Tbk'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.
PT Gudang Garam Tbk ROIC % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, PT Gudang Garam Tbk's ROIC % distribution charts can be found below:
* The bar in red indicates where PT Gudang Garam Tbk'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.
PT Gudang Garam Tbk (GGNPF) has a ROIC % of 9.88% 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 PT Gudang Garam Tbk and its competitors.
Is PT Gudang Garam Tbk's ROIC % too high?
PT Gudang Garam Tbk's current ROIC % is 9.88%. The Tobacco Products industry median ROIC % is 8.99. PT Gudang Garam Tbk's value of 9.88% is 9.9% above this industry median. Overall, PT Gudang Garam Tbk has a GF Score™ of 51/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PT Gudang Garam Tbk's ROIC % compare to PM and MO?
PT Gudang Garam Tbk's ROIC % of 9.88% can be compared against companies in the Tobacco Products industry. The industry median ROIC % is 8.99. PT Gudang Garam Tbk's value of 9.88% is 9.9% 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 Tobacco Products company?
The median ROIC % among Tobacco Products companies is 8.99, based on 48 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. PT Gudang Garam Tbk's current ROIC % of 9.88% is 9.9% 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 PT Gudang Garam Tbk and its competitors. For the Tobacco Products industry, the median ROIC % is 8.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Gudang Garam Tbk's current ROIC % is 9.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Gudang Garam Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Gudang Garam Tbk (GGNPF) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.85, compared to a current price of $0.96 — trading 13.1% above its estimated fair value. The current ROIC % is 9.88% and 9.9% above the Tobacco Products industry median of 8.99. PT Gudang Garam Tbk's overall GF Score™ is 51/100 with 9 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 PT Gudang Garam Tbk (GGNPF), the current ROIC % is 9.88% 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 PT Gudang Garam Tbk (GGNPF) Overvalued in 2026?
Based on GuruFocus' analysis, PT Gudang Garam Tbk stock appears to be overvalued.
The current stock price of $0.96 is trading 13.1% above its estimated GF Value™ of $0.85.
GuruFocus considers PT Gudang Garam Tbk to be Modestly Overvalued.
Key valuation signals for GGNPF:
ROIC %: 9.88%
GF Value™: $0.85 vs. price of $0.96 (13.1% above fair value)
Industry Position: 9.9% above the Tobacco Products median
No single metric tells the full story. See the GGNPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Gudang Garam Tbk manufactures kretek cigarettes, which are clove cigarettes common in Indonesia. The firm's operations are almost entirely domestic, with its tobacco and clove farmers. Nearly majority of the company's sales are generated in Indonesia. The company's brand families include Gudang Garam, Merah, and others. Other brands include Sriwedari, which is a hand-rolled brand, and Klobot. The company's segment includes Cigarettes, Paperboard, Infrastructure, and Others. The company generates the majority of revenue from sale of Cigarettes.
51GF Score
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