ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. L E Lundbergforetagen AB's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.34%.
As of today (2026-07-01), L E Lundbergforetagen AB's WACC % is 6.56%. L E Lundbergforetagen AB's ROIC % is 3.08% (calculated using TTM income statement data).
L E Lundbergforetagen AB earns returns that do not match up to its cost of capital. It will destroy value as it grows.
L E Lundbergforetagen AB (MIL:1LUND) 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, L E Lundbergforetagen AB's WACC % is 6.56%. L E Lundbergforetagen AB's ROIC % is 3.08% (calculated using TTM income statement data).
L E Lundbergforetagen AB 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.
* 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 Conglomerates subindustry, L E Lundbergforetagen AB'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.
L E Lundbergforetagen AB ROIC % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, L E Lundbergforetagen AB's ROIC % distribution charts can be found below:
* The bar in red indicates where L E Lundbergforetagen AB'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.
L E Lundbergforetagen AB (MIL:1LUND) has a ROIC % of 4.34% 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 L E Lundbergforetagen AB and its competitors.
Is L E Lundbergforetagen AB's ROIC % too high?
L E Lundbergforetagen AB's current ROIC % is 4.34%. The Conglomerates industry median ROIC % is 2.78. L E Lundbergforetagen AB's value of 4.34% is 56.4% above this industry median. Overall, L E Lundbergforetagen AB has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does L E Lundbergforetagen AB's ROIC % compare to HON and MMM?
L E Lundbergforetagen AB's ROIC % of 4.34% can be compared against companies in the Conglomerates industry. The industry median ROIC % is 2.78. L E Lundbergforetagen AB's value of 4.34% is 56.4% 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 Conglomerates company?
The median ROIC % among Conglomerates companies is 2.78, based on 552 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. L E Lundbergforetagen AB's current ROIC % of 4.34% is 56.4% 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 L E Lundbergforetagen AB and its competitors. For the Conglomerates industry, the median ROIC % is 2.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L E Lundbergforetagen AB's current ROIC % is 4.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L E Lundbergforetagen AB stock overvalued right now?
L E Lundbergforetagen AB (MIL:1LUND) has a current ROIC % of 4.34%. The stock's GF Value™ is €44.50, compared to a current price of €49.38 — trading 11% above its estimated fair value. The current ROIC % is 4.34% and 56.4% above the Conglomerates industry median of 2.78. L E Lundbergforetagen AB's overall GF Score™ is 71/100 with 7 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 L E Lundbergforetagen AB (MIL:1LUND), the current ROIC % is 4.34% 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 L E Lundbergforetagen AB (MIL:1LUND) Overvalued in 2026?
Based on GuruFocus' analysis, L E Lundbergforetagen AB stock appears to be overvalued.
The current stock price of €49.38 is trading 11% above its estimated GF Value™ of €44.50.
Key valuation signals for MIL:1LUND:
ROIC %: 4.34%
GF Value™: €44.50 vs. price of €49.38 (11% above fair value)
Industry Position: 56.4% above the Conglomerates median
No single metric tells the full story. See the MIL:1LUND stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
L E Lundbergforetagen AB is an investment holding company with a long-term, activist orientation. Its portfolio includes a wholly owned unlisted real estate entity, publicly-traded subsidiaries, and other shareholdings. Lundberg's investment objective is to generate returns on capital that over time substantially exceed the yield on a risk-free, interest-bearing instrument. Real estate operations, which the company has conducted through subsidiaries for decades, account for nearly half of the company's net asset value. Lundberg exercises activism through board representation on all of its portfolio companies. It supports its capital allocation program by maintaining low levels of indebtedness on its balance sheet.
71GF Score
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