ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Workspace Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.94%.
As of today (2026-07-01), Workspace Group's WACC % is 7.20%. Workspace Group's ROIC % is 3.90% (calculated using TTM income statement data).
Workspace Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Workspace Group (LSE:WKP) 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, Workspace Group's WACC % is 7.20%. Workspace Group's ROIC % is 3.90% (calculated using TTM income statement data).
Workspace Group 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.
Workspace Group ROIC % Related Terms
Workspace Group ROIC % Historical Data
* Premium members only.
The historical data trend for Workspace Group'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 REIT - Office subindustry, Workspace Group'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.
Workspace Group ROIC % vs REITs Industry
For the REITs industry and Real Estate sector, Workspace Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Workspace Group'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.
Workspace Group (LSE:WKP) has a ROIC % of 3.94% 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 Workspace Group and its competitors.
Is Workspace Group's ROIC % too high?
Workspace Group's current ROIC % is 3.94%. The REITs industry median ROIC % is 3.74. Workspace Group's value of 3.94% is 5.3% above this industry median. Overall, Workspace Group has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Workspace Group's ROIC % compare to BXP and ARE?
Workspace Group's ROIC % of 3.94% can be compared against companies in the REITs industry. The industry median ROIC % is 3.74. Workspace Group's value of 3.94% is 5.3% 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 REITs company?
The median ROIC % among REITs companies is 3.74, based on 747 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. Workspace Group's current ROIC % of 3.94% is 5.3% 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 Workspace Group and its competitors. For the REITs industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Workspace Group's current ROIC % is 3.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Workspace Group stock overvalued right now?
Based on GuruFocus' analysis, Workspace Group (LSE:WKP) is currently considered Modestly Undervalued. The stock's GF Value™ is £4.51, compared to a current price of £3.46 — trading 23.2% below its estimated fair value. The current ROIC % is 3.94% and 5.3% above the REITs industry median of 3.74. Workspace Group's overall GF Score™ is 65/100 with 3 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 Workspace Group (LSE:WKP), the current ROIC % is 3.94% 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 Workspace Group (LSE:WKP) Overvalued in 2026?
Based on GuruFocus' analysis, Workspace Group stock appears to be undervalued.
The current stock price of £3.46 is trading 23.2% below its estimated GF Value™ of £4.51.
GuruFocus considers Workspace Group to be Modestly Undervalued.
Key valuation signals for LSE:WKP:
ROIC %: 3.94%
GF Value™: £4.51 vs. price of £3.46 (23.2% below fair value)
No single metric tells the full story. See the LSE:WKP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Workspace Group PLC is a real estate investment trust engaged in the acquisition, design, development, and ownership of office buildings throughout London. The company mainly focuses on leasing office properties to new and growing companies. The real estate assets in Workspace's portfolio are clustered around the London area of Farringdon and elsewhere in northern and central London. The company derives the vast majority of its income in the form of rental revenue from tenants organized into short-term leases. Workspace's tenants include marketing, business consultancy, fashion, finance, software, and architectural firms.
65GF Score
Get the complete analysis for LSE:WKP
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:WKP has been successfully added to your 
