ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Mortgage Advice Bureau (Holdings)'s annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 14.37%.
As of today (2026-07-02), Mortgage Advice Bureau (Holdings)'s WACC % is 8.39%. Mortgage Advice Bureau (Holdings)'s ROIC % is 12.73% (calculated using TTM income statement data).
Mortgage Advice Bureau (Holdings) 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.
Mortgage Advice Bureau (Holdings) (LSE:MAB1) 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, Mortgage Advice Bureau (Holdings)'s WACC % is 8.39%. Mortgage Advice Bureau (Holdings)'s ROIC % is 12.73% (calculated using TTM income statement data).
Mortgage Advice Bureau (Holdings) 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.
Mortgage Advice Bureau (Holdings) ROIC % Related Terms
Mortgage Advice Bureau (Holdings) ROIC % Historical Data
* 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 Mortgage Finance subindustry, Mortgage Advice Bureau (Holdings)'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.
Mortgage Advice Bureau (Holdings) ROIC % vs Banks Industry
For the Banks industry and Financial Services sector, Mortgage Advice Bureau (Holdings)'s ROIC % distribution charts can be found below:
* The bar in red indicates where Mortgage Advice Bureau (Holdings)'s ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Mortgage Advice Bureau (Holdings) (LSE:MAB1) has a ROIC % of 14.37% 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 Mortgage Advice Bureau (Holdings) and its competitors.
Is Mortgage Advice Bureau (Holdings)'s ROIC % too high?
Mortgage Advice Bureau (Holdings)'s current ROIC % is 14.37%. The Banks industry median ROIC % is 1.98. Mortgage Advice Bureau (Holdings)'s value of 14.37% is 627.6% above this industry median. Overall, Mortgage Advice Bureau (Holdings) has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mortgage Advice Bureau (Holdings)'s ROIC % compare to RKT and FNMA?
Mortgage Advice Bureau (Holdings)'s ROIC % of 14.37% can be compared against companies in the Banks industry. The industry median ROIC % is 1.98. Mortgage Advice Bureau (Holdings)'s value of 14.37% is 627.6% 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 Banks company?
The median ROIC % among Banks companies is 1.98, based on 48 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. Mortgage Advice Bureau (Holdings)'s current ROIC % of 14.37% is 627.6% 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 Mortgage Advice Bureau (Holdings) and its competitors. For the Banks industry, the median ROIC % is 1.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mortgage Advice Bureau (Holdings)'s current ROIC % is 14.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mortgage Advice Bureau (Holdings) stock overvalued right now?
Based on GuruFocus' analysis, Mortgage Advice Bureau (Holdings) (LSE:MAB1) is currently considered Significantly Undervalued. The stock's GF Value™ is £9.57, compared to a current price of £5.30 — trading 44.6% below its estimated fair value. The current ROIC % is 14.37% and 627.6% above the Banks industry median of 1.98. Mortgage Advice Bureau (Holdings)'s overall GF Score™ is 82/100 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 Mortgage Advice Bureau (Holdings) (LSE:MAB1), the current ROIC % is 14.37% 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 Mortgage Advice Bureau (Holdings) (LSE:MAB1) Overvalued in 2026?
Based on GuruFocus' analysis, Mortgage Advice Bureau (Holdings) stock appears to be undervalued.
The current stock price of £5.30 is trading 44.6% below its estimated GF Value™ of £9.57.
GuruFocus considers Mortgage Advice Bureau (Holdings) to be Significantly Undervalued.
Key valuation signals for LSE:MAB1:
ROIC %: 14.37%
GF Value™: £9.57 vs. price of £5.30 (44.6% below fair value)
No single metric tells the full story. See the LSE:MAB1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mortgage Advice Bureau (Holdings) Business Description
Mortgage Advice Bureau (Holdings) PLC provides mortgage advice and also advice on protection and general insurance products. The group offers advice on residential and buy-to-let mortgage products. The company has developed customized support services for intermediary firms that operate in estate agencies, new build, buy-to-let, mortgage shops and telephone-based mortgage services. The company derives its revenues from mortgage procuration fees, insurance commissions, and client fees. Mortgage procuration fees generate the majority of the revenues.
82GF Score
Get the complete analysis for LSE:MAB1
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
LSE:MAB1 has been successfully added to your 
