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 Teladan Prima Agro Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 14.45%.
As of today (2026-07-01), PT Teladan Prima Agro Tbk's WACC % is 7.71%. PT Teladan Prima Agro Tbk's ROIC % is 18.88% (calculated using TTM income statement data).
PT Teladan Prima Agro Tbk 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.
PT Teladan Prima Agro Tbk (ISX:TLDN) 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 Teladan Prima Agro Tbk's WACC % is 7.71%. PT Teladan Prima Agro Tbk's ROIC % is 18.88% (calculated using TTM income statement data).
PT Teladan Prima Agro Tbk 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.
* 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 Farm Products subindustry, PT Teladan Prima Agro 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 Teladan Prima Agro Tbk ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, PT Teladan Prima Agro Tbk's ROIC % distribution charts can be found below:
* The bar in red indicates where PT Teladan Prima Agro 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 Teladan Prima Agro Tbk (ISX:TLDN) has a ROIC % of 14.45% 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 Teladan Prima Agro Tbk and its competitors.
Is PT Teladan Prima Agro Tbk's ROIC % too high?
PT Teladan Prima Agro Tbk's current ROIC % is 14.45%. The Consumer Packaged Goods industry median ROIC % is 5.14. PT Teladan Prima Agro Tbk's value of 14.45% is 181.4% above this industry median. Overall, PT Teladan Prima Agro Tbk has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PT Teladan Prima Agro Tbk's ROIC % compare to ADM and BG?
PT Teladan Prima Agro Tbk's ROIC % of 14.45% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.14. PT Teladan Prima Agro Tbk's value of 14.45% is 181.4% 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 Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.14, based on 1,942 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 Teladan Prima Agro Tbk's current ROIC % of 14.45% is 181.4% 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 Teladan Prima Agro Tbk and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Teladan Prima Agro Tbk's current ROIC % is 14.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Teladan Prima Agro Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Teladan Prima Agro Tbk (ISX:TLDN) is currently considered Modestly Undervalued. The stock's GF Value™ is Rp697.66, compared to a current price of Rp494.00 — trading 29.2% below its estimated fair value. The current ROIC % is 14.45% and 181.4% above the Consumer Packaged Goods industry median of 5.14. PT Teladan Prima Agro Tbk's overall GF Score™ is 88/100. 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 Teladan Prima Agro Tbk (ISX:TLDN), the current ROIC % is 14.45% 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 Teladan Prima Agro Tbk (ISX:TLDN) Overvalued in 2026?
Based on GuruFocus' analysis, PT Teladan Prima Agro Tbk stock appears to be undervalued.
The current stock price of Rp494.00 is trading 29.2% below its estimated GF Value™ of Rp697.66.
GuruFocus considers PT Teladan Prima Agro Tbk to be Modestly Undervalued.
Key valuation signals for ISX:TLDN:
ROIC %: 14.45%
GF Value™: Rp697.66 vs. price of Rp494.00 (29.2% below fair value)
Industry Position: 181.4% above the Consumer Packaged Goods median
No single metric tells the full story. See the ISX:TLDN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Teladan Prima Agro Tbk is an agribusiness focused on managing sustainable palm oil plantations, mills, and renewable energy. The group is strategically located in East Kalimantan Province, specifically in the Regency of Berau, East Kutai, Paser, and Kutai Kartanegara. The group is organized in one operating segment: oil palm plantation.
88GF Score
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