ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Eldorado Gold's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 10.42%.
As of today (2026-06-27), Eldorado Gold's WACC % is 10.51%. Eldorado Gold's ROIC % is 13.31% (calculated using TTM income statement data).
Eldorado Gold 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.
Eldorado Gold (HAM:ELO1) 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, Eldorado Gold's WACC % is 10.51%. Eldorado Gold's ROIC % is 13.31% (calculated using TTM income statement data).
Eldorado Gold 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.
Eldorado Gold ROIC % Related Terms
Eldorado Gold ROIC % Historical Data
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The historical data trend for Eldorado Gold'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 Gold subindustry, Eldorado Gold'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.
Eldorado Gold ROIC % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Eldorado Gold's ROIC % distribution charts can be found below:
* The bar in red indicates where Eldorado Gold'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.
Eldorado Gold (HAM:ELO1) has a ROIC % of 10.42% 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 Eldorado Gold and its competitors.
Is Eldorado Gold's ROIC % too high?
Eldorado Gold's current ROIC % is 10.42%. Overall, Eldorado Gold has a GF Score™ of 92/100, reflecting its overall financial health beyond just this single metric.
How does Eldorado Gold's ROIC % compare to NEM and AU?
Eldorado Gold's ROIC % of 10.42% can be compared against companies in the Metals & Mining industry. 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 Metals & Mining company?
A good ROIC % depends on the Metals & Mining industry context. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Eldorado Gold and its competitors. Eldorado Gold's current ROIC % is 10.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eldorado Gold stock overvalued right now?
Eldorado Gold (HAM:ELO1) has a current ROIC % of 10.42%. The stock's GF Value™ is €27.34, compared to a current price of €25.98 — trading 5% below its estimated fair value. The current ROIC % is 10.42%. Eldorado Gold's overall GF Score™ is 92/100 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 Eldorado Gold (HAM:ELO1), the current ROIC % is 10.42% 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 Eldorado Gold (HAM:ELO1) Overvalued in 2026?
Based on GuruFocus' analysis, Eldorado Gold stock appears to be undervalued.
The current stock price of €25.98 is trading 5% below its estimated GF Value™ of €27.34.
Key valuation signals for HAM:ELO1:
ROIC %: 10.42%
GF Value™: €27.34 vs. price of €25.98 (5% below fair value)
No single metric tells the full story. See the HAM:ELO1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eldorado Gold Corp is a gold and base metals producer with mining, development, and exploration operations in Turkey, Canada, and Greece. It has a portfolio of high-quality assets and long-term partnerships with local communities. Some of its projects include Kisladag, Efemcukuru, Skouries; Perama Hill, and Certej projects. It has three geographical segments: The Turkiye reporting segment includes the Kisladag and the Efemcukuru mines and exploration activities in Turkiye. The Canada reporting segment that derives maximum revenue, includes Lamaque and exploration activities in Canada. The Greece reporting segment includes the Olympias mine, the Skouries and Perama Hill projects and exploration activities in Greece.
92GF Score
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