ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Elisa Oyj's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 12.98%.
As of today (2026-06-29), Elisa Oyj's WACC % is 4.84%. Elisa Oyj's ROIC % is 12.00% (calculated using TTM income statement data).
Elisa Oyj 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.
Elisa Oyj (HAM:EIA) 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, Elisa Oyj's WACC % is 4.84%. Elisa Oyj's ROIC % is 12.00% (calculated using TTM income statement data).
Elisa Oyj 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.
Elisa Oyj ROIC % Related Terms
Elisa Oyj ROIC % Historical Data
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The historical data trend for Elisa Oyj'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 Telecom Services subindustry, Elisa Oyj'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.
Elisa Oyj ROIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Elisa Oyj's ROIC % distribution charts can be found below:
* The bar in red indicates where Elisa Oyj'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.
Elisa Oyj (HAM:EIA) has a ROIC % of 12.98% 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 Elisa Oyj and its competitors.
Is Elisa Oyj's ROIC % too high?
Elisa Oyj's current ROIC % is 12.98%. The Telecommunication Services industry median ROIC % is 4.53. Elisa Oyj's value of 12.98% is 186.9% above this industry median. Overall, Elisa Oyj has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does Elisa Oyj's ROIC % compare to TMUS and VZ?
Elisa Oyj's ROIC % of 12.98% can be compared against companies in the Telecommunication Services industry. The industry median ROIC % is 4.53. Elisa Oyj's value of 12.98% is 186.9% 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 Telecommunication Services company?
The median ROIC % among Telecommunication Services companies is 4.53, based on 364 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. Elisa Oyj's current ROIC % of 12.98% is 186.9% 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 Elisa Oyj and its competitors. For the Telecommunication Services industry, the median ROIC % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elisa Oyj's current ROIC % is 12.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elisa Oyj stock overvalued right now?
Elisa Oyj (HAM:EIA) has a current ROIC % of 12.98%. The stock's GF Value™ is €44.11, compared to a current price of €36.88 — trading 16.4% below its estimated fair value. The current ROIC % is 12.98% and 186.9% above the Telecommunication Services industry median of 4.53. Elisa Oyj's overall GF Score™ is 90/100 with 2 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 Elisa Oyj (HAM:EIA), the current ROIC % is 12.98% 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 Elisa Oyj (HAM:EIA) Overvalued in 2026?
Based on GuruFocus' analysis, Elisa Oyj stock appears to be undervalued.
The current stock price of €36.88 is trading 16.4% below its estimated GF Value™ of €44.11.
Key valuation signals for HAM:EIA:
ROIC %: 12.98%
GF Value™: €44.11 vs. price of €36.88 (16.4% below fair value)
Industry Position: 186.9% above the Telecommunication Services median
No single metric tells the full story. See the HAM:EIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elisa Oyj is a telecommunications company that operates in two segments, Consumer Customers and Corporate Customers. The Consumer Customers segment provides consumers with telecommunications and communications services, such as fixed and mobile subscriptions with supplementary digital services, cable TV subscriptions, and Elisa Viihde entertainment service. The Corporate Customers segment provides corporate and public administration organizations with services such as IT and communication solutions for the digital environment and fixed and mobile subscriptions. The majority of revenue is generated from the Consumer Customers segment. The company generates the majority of its revenue in Finland.
90GF Score
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