ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. London Stock Exchange Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 0.23%.
As of today (2026-06-24), London Stock Exchange Group's WACC % is 6.79%. London Stock Exchange Group's ROIC % is 0.24% (calculated using TTM income statement data).
London Stock Exchange Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
London Stock Exchange Group (MEX:LSEN) 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, London Stock Exchange Group's WACC % is 6.79%. London Stock Exchange Group's ROIC % is 0.24% (calculated using TTM income statement data).
London Stock Exchange 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.
London Stock Exchange Group ROIC % Related Terms
London Stock Exchange Group 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 Financial Data & Stock Exchanges subindustry, London Stock Exchange 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.
London Stock Exchange Group ROIC % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, London Stock Exchange Group's ROIC % distribution charts can be found below:
* The bar in red indicates where London Stock Exchange Group'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.
London Stock Exchange Group (MEX:LSEN) has a ROIC % of 0.23% 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 London Stock Exchange Group and its competitors.
Is London Stock Exchange Group's ROIC % too high?
London Stock Exchange Group's current ROIC % is 0.23%. The Capital Markets industry median ROIC % is 1.23. London Stock Exchange Group's value of 0.23% is 81.2% below this industry median. Overall, London Stock Exchange Group has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does London Stock Exchange Group's ROIC % compare to SPGI and CME?
London Stock Exchange Group's ROIC % of 0.23% can be compared against companies in the Capital Markets industry. The industry median ROIC % is 1.23. London Stock Exchange Group's value of 0.23% is 81.2% below 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 Capital Markets company?
The median ROIC % among Capital Markets companies is 1.23, based on 694 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. London Stock Exchange Group's current ROIC % of 0.23% is 81.2% below 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 London Stock Exchange Group and its competitors. For the Capital Markets industry, the median ROIC % is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. London Stock Exchange Group's current ROIC % is 0.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is London Stock Exchange Group stock overvalued right now?
Based on GuruFocus' analysis, London Stock Exchange Group (MEX:LSEN) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN2,536.64, compared to a current price of MXN1,939.00 — trading 23.6% below its estimated fair value. The current ROIC % is 0.23% and 81.2% below the Capital Markets industry median of 1.23. London Stock Exchange Group's overall GF Score™ is 78/100 with 5 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 London Stock Exchange Group (MEX:LSEN), the current ROIC % is 0.23% 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 London Stock Exchange Group (MEX:LSEN) Overvalued in 2026?
Based on GuruFocus' analysis, London Stock Exchange Group stock appears to be undervalued.
The current stock price of MXN1,939.00 is trading 23.6% below its estimated GF Value™ of MXN2,536.64.
GuruFocus considers London Stock Exchange Group to be Modestly Undervalued.
Key valuation signals for MEX:LSEN:
ROIC %: 0.23%
GF Value™: MXN2,536.64 vs. price of MXN1,939.00 (23.6% below fair value)
Industry Position: 81.2% below the Capital Markets median
No single metric tells the full story. See the MEX:LSEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
London Stock Exchange Group is a fully integrated financial exchange company covering the financial market value chain from primary and secondary markets across multiple asset classes over data, index, and analytics down to clearing and post-trading reporting. With the acquisition of Refinitiv, LSEG generates about two-thirds of its revenue from data and analytics including its FTSE Russell and WM/Refinitiv benchmarks as well as data feeds and terminals. The group is also a majority shareholder in Tradeweb, one of the dominant global fixed-income trading venues, as well as LCH, the largest clearinghouse for over-the-counter swaps globally.
78GF Score
Get the complete analysis for MEX:LSEN
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
MEX:LSEN has been successfully added to your 
