ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Silgo Retail's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2025 was 4.98%.
As of today (2026-07-07), Silgo Retail's WACC % is 6.72%. Silgo Retail's ROIC % is 6.86% (calculated using TTM income statement data).
Silgo Retail 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.
Silgo Retail (NSE:SILGO) 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, Silgo Retail's WACC % is 6.72%. Silgo Retail's ROIC % is 6.86% (calculated using TTM income statement data).
Silgo Retail 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.
Silgo Retail ROIC % Related Terms
Silgo Retail ROIC % Historical Data
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The historical data trend for Silgo Retail'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 Luxury Goods subindustry, Silgo Retail'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.
Silgo Retail ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Silgo Retail's ROIC % distribution charts can be found below:
* The bar in red indicates where Silgo Retail's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Sep. 2025) 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.
Silgo Retail (NSE:SILGO) has a ROIC % of 4.98% as of Sep. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Silgo Retail and its competitors.
Is Silgo Retail's ROIC % too high?
Silgo Retail's current ROIC % is 4.98%. The Retail - Cyclical industry median ROIC % is 4.37. Silgo Retail's value of 4.98% is 14% above this industry median. Overall, Silgo Retail has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Silgo Retail's ROIC % compare to TPR?
Silgo Retail's ROIC % of 4.98% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.37. Silgo Retail's value of 4.98% is 14% 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 Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.37, based on 1,105 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. Silgo Retail's current ROIC % of 4.98% is 14% 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 Silgo Retail and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Silgo Retail's current ROIC % is 4.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Silgo Retail stock overvalued right now?
Based on GuruFocus' analysis, Silgo Retail (NSE:SILGO) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹28.73, compared to a current price of ₹75.89 — trading 164.1% above its estimated fair value. The current ROIC % is 4.98% and 14% above the Retail - Cyclical industry median of 4.37. Silgo Retail's overall GF Score™ is 60/100 with 5 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 Silgo Retail (NSE:SILGO), the current ROIC % is 4.98% as of Sep. 2025. 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 Silgo Retail (NSE:SILGO) Overvalued in 2026?
Based on GuruFocus' analysis, Silgo Retail stock appears to be overvalued.
The current stock price of ₹75.89 is trading 164.1% above its estimated GF Value™ of ₹28.73.
GuruFocus considers Silgo Retail to be Significantly Overvalued.
Key valuation signals for NSE:SILGO:
ROIC %: 4.98%
GF Value™: ₹28.73 vs. price of ₹75.89 (164.1% above fair value)
Industry Position: 14% above the Retail - Cyclical median
No single metric tells the full story. See the NSE:SILGO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Silgo Retail Ltd is an Indian company specializing in the trade, manufacturing, and selling of silver jewelry and precious stones. The company's product portfolio includes a wide variety of hallmarked silver jewelry, ensuring quality and authenticity. Its offerings encompass various items such as rings, earrings, pendants, bracelets, necklaces, and bangles. With a focus on craftsmanship and certified products, Silgo Retail Ltd aims to cater to domestic and international markets, positioning itself as a key player in silver jewelry.
60GF Score
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