ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Empire State Realty OP LP's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.62%.
As of today (2026-06-26), Empire State Realty OP LP's WACC % is 8.02%. Empire State Realty OP LP's ROIC % is 3.24% (calculated using TTM income statement data).
Empire State Realty OP LP earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Empire State Realty OP LP (ARCA:OGCP) 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, Empire State Realty OP LP's WACC % is 8.02%. Empire State Realty OP LP's ROIC % is 3.24% (calculated using TTM income statement data).
Empire State Realty OP LP 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 REIT - Office subindustry, Empire State Realty OP LP'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.
Empire State Realty OP LP ROIC % vs REITs Industry
For the REITs industry and Real Estate sector, Empire State Realty OP LP's ROIC % distribution charts can be found below:
* The bar in red indicates where Empire State Realty OP LP'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.
Empire State Realty OP LP (OGCP) has a ROIC % of 2.62% 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 Empire State Realty OP LP and its competitors.
Is Empire State Realty OP LP's ROIC % too high?
Empire State Realty OP LP's current ROIC % is 2.62%. The REITs industry median ROIC % is 3.74. Empire State Realty OP LP's value of 2.62% is 29.9% below this industry median. Overall, Empire State Realty OP LP has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Empire State Realty OP LP's ROIC % compare to DEI and DEA?
Empire State Realty OP LP's ROIC % of 2.62% can be compared against companies in the REITs industry. The industry median ROIC % is 3.74. Empire State Realty OP LP's value of 2.62% is 29.9% below 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 REITs company?
The median ROIC % among REITs companies is 3.74, based on 749 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. Empire State Realty OP LP's current ROIC % of 2.62% is 29.9% below 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 Empire State Realty OP LP and its competitors. For the REITs industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Empire State Realty OP LP's current ROIC % is 2.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Empire State Realty OP LP stock overvalued right now?
Based on GuruFocus' analysis, Empire State Realty OP LP (OGCP) is currently considered Possible Value Trap. The stock's GF Value™ is $8.91, compared to a current price of $5.75 — trading 35.5% below its estimated fair value. The current ROIC % is 2.62% and 29.9% below the REITs industry median of 3.74. Empire State Realty OP LP's overall GF Score™ is 60/100 with 6 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 Empire State Realty OP LP (OGCP), the current ROIC % is 2.62% 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 Empire State Realty OP LP (OGCP) Overvalued in 2026?
Based on GuruFocus' analysis, Empire State Realty OP LP stock appears to be undervalued.
The current stock price of $5.75 is trading 35.5% below its estimated GF Value™ of $8.91.
GuruFocus considers Empire State Realty OP LP to be Possible Value Trap.
Key valuation signals for OGCP:
ROIC %: 2.62%
GF Value™: $8.91 vs. price of $5.75 (35.5% below fair value)
No single metric tells the full story. See the OGCP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Empire State Realty OP LP is an NYC-focused real estate investment trust (REIT) that owns and operates a portfolio of well-leased, top-of-tier, modernized, amenitized, and well-located office, retail, and multifamily assets, conducts all of its business, and owns substantially all of its assets. The firm operates in two segments, Real Estate and Observatory. Through the Real Estate segment, it offers services related to the ownership, management, operation, acquisition, repositioning, and disposition of its real estate assets. Under the Observatory segment, it operates the two observatories of the Empire State Building. The company generates maximum revenue from the Real Estate segment.
60GF Score
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