ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. VST Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 34.16%.
As of today (2026-06-27), VST Industries's WACC % is 15.52%. VST Industries's ROIC % is 19.25% (calculated using TTM income statement data).
VST Industries 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.
VST Industries (NSE:VSTIND) 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, VST Industries's WACC % is 15.52%. VST Industries's ROIC % is 19.25% (calculated using TTM income statement data).
VST Industries 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.
VST Industries ROIC % Related Terms
VST Industries ROIC % Historical Data
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The historical data trend for VST Industries'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 Tobacco subindustry, VST Industries'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.
VST Industries ROIC % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, VST Industries's ROIC % distribution charts can be found below:
* The bar in red indicates where VST Industries'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.
VST Industries (NSE:VSTIND) has a ROIC % of 34.16% 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 VST Industries and its competitors.
Is VST Industries' ROIC % too high?
VST Industries' current ROIC % is 34.16%. The Tobacco Products industry median ROIC % is 8.99. VST Industries' value of 34.16% is 280% above this industry median. Overall, VST Industries has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does VST Industries' ROIC % compare to PM and MO?
VST Industries' ROIC % of 34.16% can be compared against companies in the Tobacco Products industry. The industry median ROIC % is 8.99. VST Industries' value of 34.16% is 280% 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 Tobacco Products company?
The median ROIC % among Tobacco Products companies is 8.99, based on 48 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. VST Industries's current ROIC % of 34.16% is 280% 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 VST Industries and its competitors. For the Tobacco Products industry, the median ROIC % is 8.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. VST Industries's current ROIC % is 34.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VST Industries stock overvalued right now?
Based on GuruFocus' analysis, VST Industries (NSE:VSTIND) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹346.98, compared to a current price of ₹261.10 — trading 24.8% below its estimated fair value. The current ROIC % is 34.16% and 280% above the Tobacco Products industry median of 8.99. VST Industries' overall GF Score™ is 83/100 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 VST Industries (NSE:VSTIND), the current ROIC % is 34.16% 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 VST Industries (NSE:VSTIND) Overvalued in 2026?
Based on GuruFocus' analysis, VST Industries stock appears to be undervalued.
The current stock price of ₹261.10 is trading 24.8% below its estimated GF Value™ of ₹346.98.
GuruFocus considers VST Industries to be Modestly Undervalued.
Key valuation signals for NSE:VSTIND:
ROIC %: 34.16%
GF Value™: ₹346.98 vs. price of ₹261.10 (24.8% below fair value)
Industry Position: 280% above the Tobacco Products median
No single metric tells the full story. See the NSE:VSTIND stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
VST Industries Ltd manufactures and distributes cigarettes and unmanufactured tobacco under the brand names Charms, Charminar, Gold, Moments, and Zaffran. The company operates its business out of India. In terms of revenue from operations, a majority comes from the sale of cigarettes and the remainder generally comes from the sale of unmanufactured tobacco. It has a single operating segment which is. Tobacco and related products. Geographical segments consist of sales within India and sales outside of India with a majority derived from India.
83GF Score
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