ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. We Buy Cars Holding's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 20.13%.
As of today (2026-06-30), We Buy Cars Holding's WACC % is 13.92%. We Buy Cars Holding's ROIC % is 19.81% (calculated using TTM income statement data).
We Buy Cars Holding 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.
We Buy Cars Holding (JSE:WBC) 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, We Buy Cars Holding's WACC % is 13.92%. We Buy Cars Holding's ROIC % is 19.81% (calculated using TTM income statement data).
We Buy Cars Holding 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.
We Buy Cars Holding ROIC % Related Terms
We Buy Cars Holding ROIC % Historical Data
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The historical data trend for We Buy Cars Holding'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 Auto & Truck Dealerships subindustry, We Buy Cars Holding'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.
We Buy Cars Holding ROIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, We Buy Cars Holding's ROIC % distribution charts can be found below:
* The bar in red indicates where We Buy Cars Holding's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
We Buy Cars Holding (JSE:WBC) has a ROIC % of 20.13% 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 We Buy Cars Holding and its competitors.
Is We Buy Cars Holding's ROIC % too high?
We Buy Cars Holding's current ROIC % is 20.13%. The Vehicles & Parts industry median ROIC % is 5.09. We Buy Cars Holding's value of 20.13% is 295.5% above this industry median. Overall, We Buy Cars Holding has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does We Buy Cars Holding's ROIC % compare to CVNA and PAG?
We Buy Cars Holding's ROIC % of 20.13% can be compared against companies in the Vehicles & Parts industry. The industry median ROIC % is 5.09. We Buy Cars Holding's value of 20.13% is 295.5% 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 Vehicles & Parts company?
The median ROIC % among Vehicles & Parts companies is 5.09, based on 1,315 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. We Buy Cars Holding's current ROIC % of 20.13% is 295.5% 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 We Buy Cars Holding and its competitors. For the Vehicles & Parts industry, the median ROIC % is 5.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. We Buy Cars Holding's current ROIC % is 20.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is We Buy Cars Holding stock overvalued right now?
We Buy Cars Holding (JSE:WBC) has a current ROIC % of 20.13%. The current ROIC % is 20.13% and 295.5% above the Vehicles & Parts industry median of 5.09. We Buy Cars Holding's overall GF Score™ is 18/100. 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 We Buy Cars Holding (JSE:WBC), the current ROIC % is 20.13% 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.
We Buy Cars Holding Ltd is an automotive retailer focused on buying, reconditioning, and retail sales through both physical supermarkets and its digital platforms. The company's two reportable segments are: i) Buyer, distributor and retailer of pre-owned motor vehicles with the attendant sale of finance and insurance products and other ancillary products. ii) Property rental: Rental of warehouses to group companies. The majority of the company's revenue is derived from the Buyer, distributor and retailer of pre-owned motor vehicles segment.
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