ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Byke Hospitality's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.35%.
As of today (2026-07-06), Byke Hospitality's WACC % is 16.51%. Byke Hospitality's ROIC % is 5.62% (calculated using TTM income statement data).
Byke Hospitality earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Byke Hospitality (NSE:BYKE) 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, Byke Hospitality's WACC % is 16.51%. Byke Hospitality's ROIC % is 5.62% (calculated using TTM income statement data).
Byke Hospitality 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.
Byke Hospitality ROIC % Related Terms
Byke Hospitality ROIC % Historical Data
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The historical data trend for Byke Hospitality'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 Lodging subindustry, Byke Hospitality'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.
Byke Hospitality ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Byke Hospitality's ROIC % distribution charts can be found below:
* The bar in red indicates where Byke Hospitality'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.
Byke Hospitality (NSE:BYKE) has a ROIC % of 5.35% 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 Byke Hospitality and its competitors.
Is Byke Hospitality's ROIC % too high?
Byke Hospitality's current ROIC % is 5.35%. The Travel & Leisure industry median ROIC % is 3.74. Byke Hospitality's value of 5.35% is 43% above this industry median. Overall, Byke Hospitality has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Byke Hospitality's ROIC % compare to MAR and HLT?
Byke Hospitality's ROIC % of 5.35% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.74. Byke Hospitality's value of 5.35% is 43% 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 3.74, based on 835 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. Byke Hospitality's current ROIC % of 5.35% is 43% 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 Byke Hospitality and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Byke Hospitality's current ROIC % is 5.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Byke Hospitality stock overvalued right now?
Based on GuruFocus' analysis, Byke Hospitality (NSE:BYKE) is currently considered Possible Value Trap. The stock's GF Value™ is ₹63.45, compared to a current price of ₹32.55 — trading 48.7% below its estimated fair value. The current ROIC % is 5.35% and 43% above the Travel & Leisure industry median of 3.74. Byke Hospitality's overall GF Score™ is 70/100 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 Byke Hospitality (NSE:BYKE), the current ROIC % is 5.35% 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 Byke Hospitality (NSE:BYKE) Overvalued in 2026?
Based on GuruFocus' analysis, Byke Hospitality stock appears to be undervalued.
The current stock price of ₹32.55 is trading 48.7% below its estimated GF Value™ of ₹63.45.
GuruFocus considers Byke Hospitality to be Possible Value Trap.
Key valuation signals for NSE:BYKE:
ROIC %: 5.35%
GF Value™: ₹63.45 vs. price of ₹32.55 (48.7% below fair value)
Industry Position: 43% above the Travel & Leisure median
No single metric tells the full story. See the NSE:BYKE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressShree Shakambhari Corporate Park, Plot Number 156-158, Chakravati Ashok Complex, Near Cambridge School, J. B. Nagar, Andheri (East), Sunil Patodia Tower, Mumbai, MH, IND, 400099
Byke Hospitality Ltd is a company operating in the hospitality sector. Its hotels and resorts include The Byke Nature Vilas, The Byke Heritage Resort, The Byke Delotel, The Byke Studio Apartment, The Byke Sai Cottage, and Others. It has only one business, which is hoteliering. Its operations are undertaken only in India.
70GF Score
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