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 Indofarma Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was -41.76%.
As of today (2026-06-28), PT Indofarma Tbk's WACC % is 4.08%. PT Indofarma Tbk's ROIC % is -20.49% (calculated using TTM income statement data).
PT Indofarma Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.
PT Indofarma Tbk (ISX:INAF) 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, PT Indofarma Tbk's WACC % is 4.08%. PT Indofarma Tbk's ROIC % is -20.49% (calculated using TTM income statement data).
PT Indofarma 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 Indofarma Tbk ROIC % Related Terms
PT Indofarma Tbk ROIC % Historical Data
* Premium members only.
The historical data trend for PT Indofarma 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 Drug Manufacturers - Specialty & Generic subindustry, PT Indofarma 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 Indofarma Tbk ROIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, PT Indofarma Tbk's ROIC % distribution charts can be found below:
* The bar in red indicates where PT Indofarma Tbk's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Dec. 2025) 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 Indofarma Tbk (ISX:INAF) has a ROIC % of -41.76% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on PT Indofarma Tbk and its competitors.
Is PT Indofarma Tbk's ROIC % too high?
PT Indofarma Tbk's current ROIC % is -41.76%. Overall, PT Indofarma Tbk has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does PT Indofarma Tbk's ROIC % compare to ZTS and VTRS?
PT Indofarma Tbk's ROIC % of -41.76% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.46. 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 Drug Manufacturers company?
The median ROIC % among Drug Manufacturers companies is 4.46, based on 982 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. 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 Indofarma Tbk and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Indofarma Tbk's current ROIC % is -41.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Indofarma Tbk stock overvalued right now?
PT Indofarma Tbk (ISX:INAF) has a current ROIC % of -41.76%. The stock's GF Value™ is Rp176.99, compared to a current price of Rp126.00 — trading 28.8% below its estimated fair value. The current ROIC % is -41.76%. PT Indofarma Tbk's overall GF Score™ is 8/100 with 6 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 Indofarma Tbk (ISX:INAF), the current ROIC % is -41.76% as of Dec. 2025. 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 Indofarma Tbk (ISX:INAF) Overvalued in 2026?
Based on GuruFocus' analysis, PT Indofarma Tbk stock appears to be undervalued.
The current stock price of Rp126.00 is trading 28.8% below its estimated GF Value™ of Rp176.99.
Key valuation signals for ISX:INAF:
ROIC %: -41.76%
GF Value™: Rp176.99 vs. price of Rp126.00 (28.8% below fair value)
No single metric tells the full story. See the ISX:INAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Indofarma Tbk is a specialty and generic drug manufacturing company. The company has four business segments - Medicine, Medical Devices and others. The Medicine business segment includes drug production, marketing distribution, and sales. The Medical Device Segment includes medical devices and other products. Company generates majority revenue from the Medicine segment. The Company classifies its distribution segments based on geographic regions into six areas, namely Java, Sumatra, Kalimantan, Sulawesi, Bali dan West Nusa Tenggara (NTB),as well as the Eastern Indonesia region.
8GF Score
Get the complete analysis for ISX:INAF
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
ISX:INAF has been successfully added to your 
