ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Peloton Interactive's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 25.59%.
As of today (2026-06-26), Peloton Interactive's WACC % is 11.93%. Peloton Interactive's ROIC % is 16.83% (calculated using TTM income statement data).
Peloton Interactive 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.
Peloton Interactive (MEX:PTON) 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, Peloton Interactive's WACC % is 11.93%. Peloton Interactive's ROIC % is 16.83% (calculated using TTM income statement data).
Peloton Interactive 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.
Peloton Interactive ROIC % Related Terms
Peloton Interactive ROIC % Historical Data
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The historical data trend for Peloton Interactive'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 Leisure subindustry, Peloton Interactive'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.
Peloton Interactive ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Peloton Interactive's ROIC % distribution charts can be found below:
* The bar in red indicates where Peloton Interactive's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (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.
Peloton Interactive (MEX:PTON) has a ROIC % of 25.59% 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 Peloton Interactive and its competitors.
Is Peloton Interactive's ROIC % too high?
Peloton Interactive's current ROIC % is 25.59%. The Travel & Leisure industry median ROIC % is 3.75. Peloton Interactive's value of 25.59% is 582.4% above this industry median. Overall, Peloton Interactive has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Peloton Interactive's ROIC % compare to CALY and OSW?
Peloton Interactive's ROIC % of 25.59% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.75. Peloton Interactive's value of 25.59% is 582.4% 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 Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.75, based on 834 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. Peloton Interactive's current ROIC % of 25.59% is 582.4% 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 Peloton Interactive and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Peloton Interactive's current ROIC % is 25.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Peloton Interactive stock overvalued right now?
Based on GuruFocus' analysis, Peloton Interactive (MEX:PTON) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN71.74, compared to a current price of MXN98.39 — trading 37.1% above its estimated fair value. The current ROIC % is 25.59% and 582.4% above the Travel & Leisure industry median of 3.75. Peloton Interactive's overall GF Score™ is 51/100 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 Peloton Interactive (MEX:PTON), the current ROIC % is 25.59% 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 Peloton Interactive (MEX:PTON) Overvalued in 2026?
Based on GuruFocus' analysis, Peloton Interactive stock appears to be overvalued.
The current stock price of MXN98.39 is trading 37.1% above its estimated GF Value™ of MXN71.74.
GuruFocus considers Peloton Interactive to be Significantly Overvalued.
Key valuation signals for MEX:PTON:
ROIC %: 25.59%
GF Value™: MXN71.74 vs. price of MXN98.39 (37.1% above fair value)
Industry Position: 582.4% above the Travel & Leisure median
No single metric tells the full story. See the MEX:PTON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Peloton Interactive Inc operates an interactive fitness platform. It operates its business in two reportable segments: Connected Fitness Products and Subscription. Connected Fitness Product derives revenue from the portfolio of Connected Fitness Products and related accessories, as well as Precor-branded fitness products, delivery and installation services, Peloton Bike portfolio rental products, extended warranty agreements, branded apparel, and commercial service contracts. Subscription revenue is derived from monthly Subscription fees. The company generates maximum revenue from the Subscription segment. Geographically, the company derives a majority of its revenue from North America and the rest from International markets.
51GF Score
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