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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Arihant Academy's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 13.13%.
As of today (2026-08-27), Arihant Academy's WACC % is 10.96%. Arihant Academy's ROIC % is 13.26% (calculated using TTM income statement data).
Arihant Academy 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.
Arihant Academy (NSE:ARIHANTACA) 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, Arihant Academy's WACC % is 10.96%. Arihant Academy's ROIC % is 13.26% (calculated using TTM income statement data).
Arihant Academy 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.
Arihant Academy ROIC % Related Terms
Arihant Academy ROIC % Historical Data
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The historical data trend for Arihant Academy'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.
NSE:ARIHANTACA vs EDU, TAL, LAUR: ROIC % Comparison
For the Education & Training Services subindustry, Arihant Academy'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.
Arihant Academy ROIC % vs Education Industry
For the Education industry and Consumer Defensive sector, Arihant Academy's ROIC % distribution charts can be found below:
* The bar in red indicates where Arihant Academy's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 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.
Arihant Academy (NSE:ARIHANTACA) has a ROIC % of 13.13% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Arihant Academy and its competitors.
Is Arihant Academy's ROIC % too high?
Arihant Academy's current ROIC % is 13.13%. The Education industry median ROIC % is 5.50. Arihant Academy's value of 13.13% is 138.7% above this industry median. Overall, Arihant Academy has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Arihant Academy's ROIC % compare to EDU and TAL?
Arihant Academy's ROIC % of 13.13% can be compared against companies in the Education industry. The industry median ROIC % is 5.50. Arihant Academy's value of 13.13% is 138.7% 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 Education company?
The median ROIC % among Education companies is 5.50, based on 261 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. Arihant Academy's current ROIC % of 13.13% is 138.7% 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 Arihant Academy and its competitors. For the Education industry, the median ROIC % is 5.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arihant Academy's current ROIC % is 13.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arihant Academy stock overvalued right now?
Based on GuruFocus' analysis, Arihant Academy (NSE:ARIHANTACA) is currently considered Fairly Valued. The stock's GF Value™ is ₹474.38, compared to a current price of ₹449.95 — trading 5.1% below its estimated fair value. The current ROIC % is 13.13% and 138.7% above the Education industry median of 5.50. Arihant Academy's overall GF Score™ is 92/100 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 Arihant Academy (NSE:ARIHANTACA), the current ROIC % is 13.13% as of Jun. 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 Arihant Academy (NSE:ARIHANTACA) Overvalued in 2026?
Based on GuruFocus' analysis, Arihant Academy stock appears to be undervalued.
The current stock price of ₹449.95 is trading 5.1% below its estimated GF Value™ of ₹474.38.
GuruFocus considers Arihant Academy to be Fairly Valued.
Key valuation signals for NSE:ARIHANTACA:
ROIC %: 13.13%
GF Value™: ₹474.38 vs. price of ₹449.95 (5.1% below fair value)
Industry Position: 138.7% above the Education median
No single metric tells the full story. See the NSE:ARIHANTACA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arihant Academy Ltd is an education support and coaching services provider for students in secondary and higher secondary schools, for those pursuing a graduation degree in various academic streams, preparing for competitive examinations, and undertaking chartered accountancy examinations. The company follows a classroom-first model and offers coaching programs for Class 8,9,10 (SSC, ICSE, CBSE), IIT-JEE/NEET(UG)/ MHT-CET, Class 11 and 12 (State Board), and CAFC, CA-INTER, CSEET, CS-EXEC, Fintech Certification, etc. It combines classroom teaching with guided assessments, digital support tools, and practical guidance for students' progress. The company operates in one business segment, which is coaching services. Geographically, it operates within India.
92GF Score
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