ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Vestum AB's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.56%.
As of today (2026-07-11), Vestum AB's WACC % is 17.28%. Vestum AB's ROIC % is 1.80% (calculated using TTM income statement data).
Vestum AB earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Vestum AB (OSTO:VESTUM) 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, Vestum AB's WACC % is 17.28%. Vestum AB's ROIC % is 1.80% (calculated using TTM income statement data).
Vestum AB 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.
Vestum AB ROIC % Related Terms
Vestum AB ROIC % Historical Data
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The historical data trend for Vestum AB'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 Engineering & Construction subindustry, Vestum AB'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.
Vestum AB ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Vestum AB's ROIC % distribution charts can be found below:
* The bar in red indicates where Vestum AB'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.
Vestum AB (OSTO:VESTUM) has a ROIC % of 1.56% 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 Vestum AB and its competitors.
Is Vestum AB's ROIC % too high?
Vestum AB's current ROIC % is 1.56%. The Construction industry median ROIC % is 4.67. Vestum AB's value of 1.56% is 66.6% below this industry median. Overall, Vestum AB has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vestum AB's ROIC % compare to PWR and FIX?
Vestum AB's ROIC % of 1.56% can be compared against companies in the Construction industry. The industry median ROIC % is 4.67. Vestum AB's value of 1.56% is 66.6% 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 Construction company?
The median ROIC % among Construction companies is 4.67, based on 1,753 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. Vestum AB's current ROIC % of 1.56% is 66.6% 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 Vestum AB and its competitors. For the Construction industry, the median ROIC % is 4.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vestum AB's current ROIC % is 1.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vestum AB stock overvalued right now?
Based on GuruFocus' analysis, Vestum AB (OSTO:VESTUM) is currently considered Significantly Overvalued. The stock's GF Value™ is kr7.88, compared to a current price of kr15.74 — trading 99.7% above its estimated fair value. The current ROIC % is 1.56% and 66.6% below the Construction industry median of 4.67. Vestum AB's overall GF Score™ is 43/100 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 Vestum AB (OSTO:VESTUM), the current ROIC % is 1.56% 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 Vestum AB (OSTO:VESTUM) Overvalued in 2026?
Based on GuruFocus' analysis, Vestum AB stock appears to be overvalued.
The current stock price of kr15.74 is trading 99.7% above its estimated GF Value™ of kr7.88.
GuruFocus considers Vestum AB to be Significantly Overvalued.
Key valuation signals for OSTO:VESTUM:
ROIC %: 1.56%
GF Value™: kr7.88 vs. price of kr15.74 (99.7% above fair value)
Industry Position: 66.6% below the Construction median
No single metric tells the full story. See the OSTO:VESTUM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vestum AB provides services and products to the infrastructure sector. The group develops and acquires specialist companies that operate within critical infrastructure. The business model is built on combining local presence with technical expertise and offerings that support modernisation and long-term sustainable development in the Nordic region and the United Kingdom. By focusing on structurally attractive markets where the need for renovation, energy efficiency, safety, and robust systems is increasing, and create value for both customers and society. Vestum's business model is based on decentralised governance, powerful industry and customer focus, and entrepreneurial drive. The group is developing and constructing a climate-adapted and more sustainable.
43GF Score
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ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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