ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Aster DM Quality Care's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 9.33%.
As of today (2026-07-07), Aster DM Quality Care's WACC % is 10.40%. Aster DM Quality Care's ROIC % is 7.94% (calculated using TTM income statement data).
Aster DM Quality Care earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Aster DM Quality Care (NSE:ASTERDM) 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, Aster DM Quality Care's WACC % is 10.40%. Aster DM Quality Care's ROIC % is 7.94% (calculated using TTM income statement data).
Aster DM Quality Care 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 Medical Care Facilities subindustry, Aster DM Quality Care'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.
Aster DM Quality Care ROIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Aster DM Quality Care's ROIC % distribution charts can be found below:
* The bar in red indicates where Aster DM Quality Care'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.
Aster DM Quality Care (NSE:ASTERDM) has a ROIC % of 9.33% 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 Aster DM Quality Care and its competitors.
Is Aster DM Quality Care's ROIC % too high?
Aster DM Quality Care's current ROIC % is 9.33%. The Healthcare Providers & Services industry median ROIC % is 3.09. Aster DM Quality Care's value of 9.33% is 201.9% above this industry median. Overall, Aster DM Quality Care has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aster DM Quality Care's ROIC % compare to HCA and THC?
Aster DM Quality Care's ROIC % of 9.33% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.09. Aster DM Quality Care's value of 9.33% is 201.9% 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 Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.09, based on 667 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. Aster DM Quality Care's current ROIC % of 9.33% is 201.9% 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 Aster DM Quality Care and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aster DM Quality Care's current ROIC % is 9.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aster DM Quality Care stock overvalued right now?
Based on GuruFocus' analysis, Aster DM Quality Care (NSE:ASTERDM) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹660.21, compared to a current price of ₹791.55 — trading 19.9% above its estimated fair value. The current ROIC % is 9.33% and 201.9% above the Healthcare Providers & Services industry median of 3.09. Aster DM Quality Care's overall GF Score™ is 80/100 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 Aster DM Quality Care (NSE:ASTERDM), the current ROIC % is 9.33% 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 Aster DM Quality Care (NSE:ASTERDM) Overvalued in 2026?
Based on GuruFocus' analysis, Aster DM Quality Care stock appears to be overvalued.
The current stock price of ₹791.55 is trading 19.9% above its estimated GF Value™ of ₹660.21.
GuruFocus considers Aster DM Quality Care to be Modestly Overvalued.
Key valuation signals for NSE:ASTERDM:
ROIC %: 9.33%
GF Value™: ₹660.21 vs. price of ₹791.55 (19.9% above fair value)
Industry Position: 201.9% above the Healthcare Providers & Services median
No single metric tells the full story. See the NSE:ASTERDM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aster DM Healthcare Ltd is an India-based integrated healthcare provider. The group operates a comprehensive healthcare network comprising approximately 19 hospitals, 10 clinics, over 200 pharmacies, and more than 255 diagnostic laboratories across states. Its business segments include Hospitals, Clinics, Retail Pharmacies, and Others, with the majority of revenue derived from the Hospitals segment. Aster has been delivering high-quality care from primary to quaternary through dedicated personnel across clinical and non-clinical roles. Aster has a presence in metropolitan as well as Tier II and Tier III cities, and is committed to providing advanced and accessible healthcare in line with global standards, guided by a patient-first approach.
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