ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Nintendo Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 36.90%.
As of today (2026-06-24), Nintendo Co's WACC % is 2.63%. Nintendo Co's ROIC % is 22.56% (calculated using TTM income statement data).
Nintendo Co 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.
Nintendo Co (MEX:NTDOYN) 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, Nintendo Co's WACC % is 2.63%. Nintendo Co's ROIC % is 22.56% (calculated using TTM income statement data).
Nintendo Co 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.
Nintendo Co ROIC % Related Terms
Nintendo Co ROIC % Historical Data
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The historical data trend for Nintendo Co'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 Electronic Gaming & Multimedia subindustry, Nintendo Co'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.
Nintendo Co ROIC % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Nintendo Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Nintendo Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (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.
Nintendo Co (MEX:NTDOYN) has a ROIC % of 36.90% 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 Nintendo Co and its competitors.
Is Nintendo Co's ROIC % too high?
Nintendo Co's current ROIC % is 36.90%. The Interactive Media industry median ROIC % is 1.88. Nintendo Co's value of 36.90% is 1862.8% above this industry median. Overall, Nintendo Co has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Nintendo Co's ROIC % compare to NTES and EA?
Nintendo Co's ROIC % of 36.90% can be compared against companies in the Interactive Media industry. The industry median ROIC % is 1.88. Nintendo Co's value of 36.90% is 1862.8% 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 an Interactive Media company?
The median ROIC % among Interactive Media companies is 1.88, based on 560 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. Nintendo Co's current ROIC % of 36.90% is 1862.8% 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 Nintendo Co and its competitors. For the Interactive Media industry, the median ROIC % is 1.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nintendo Co's current ROIC % is 36.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nintendo Co stock overvalued right now?
Based on GuruFocus' analysis, Nintendo Co (MEX:NTDOYN) is currently considered Possible Value Trap. The stock's GF Value™ is MXN1,495.04, compared to a current price of MXN805.00 — trading 46.2% below its estimated fair value. The current ROIC % is 36.90% and 1862.8% above the Interactive Media industry median of 1.88. Nintendo Co's overall GF Score™ is 68/100 with 4 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 Nintendo Co (MEX:NTDOYN), the current ROIC % is 36.90% 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 Nintendo Co (MEX:NTDOYN) Overvalued in 2026?
Based on GuruFocus' analysis, Nintendo Co stock appears to be undervalued.
The current stock price of MXN805.00 is trading 46.2% below its estimated GF Value™ of MXN1,495.04.
GuruFocus considers Nintendo Co to be Possible Value Trap.
Key valuation signals for MEX:NTDOYN:
ROIC %: 36.90%
GF Value™: MXN1,495.04 vs. price of MXN805.00 (46.2% below fair value)
Industry Position: 1862.8% above the Interactive Media median
No single metric tells the full story. See the MEX:NTDOYN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nintendo started its video game console business in 1983 by launching the NES, and started its portable console business in 1989 by launching the Game Boy. Since then, the firm has focused on expanding the gaming population by delivering unique entertainment experiences on its original console systems. However, Nintendo not only makes game consoles, but also owns world-renowned IPs such as Super Mario, Pokemon, and Zelda, which have been a source of cash flow for 40 years.
68GF Score
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ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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