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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. AS Tallinna Vesi's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 6.21%.
As of today (2026-07-17), AS Tallinna Vesi's WACC % is 7.23%. AS Tallinna Vesi's ROIC % is 5.53% (calculated using TTM income statement data).
AS Tallinna Vesi earns returns that do not match up to its cost of capital. It will destroy value as it grows.
AS Tallinna Vesi (OTSE:TVE1T) 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, AS Tallinna Vesi's WACC % is 7.23%. AS Tallinna Vesi's ROIC % is 5.53% (calculated using TTM income statement data).
AS Tallinna Vesi 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.
AS Tallinna Vesi ROIC % Related Terms
AS Tallinna Vesi ROIC % Historical Data
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The historical data trend for AS Tallinna Vesi'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 Utilities - Regulated Water subindustry, AS Tallinna Vesi'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.
AS Tallinna Vesi ROIC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, AS Tallinna Vesi's ROIC % distribution charts can be found below:
* The bar in red indicates where AS Tallinna Vesi'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.
AS Tallinna Vesi (OTSE:TVE1T) has a ROIC % of 6.21% 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 AS Tallinna Vesi and its competitors.
Is AS Tallinna Vesi's ROIC % too high?
AS Tallinna Vesi's current ROIC % is 6.21%. The Utilities - Regulated industry median ROIC % is 4.17. AS Tallinna Vesi's value of 6.21% is 48.9% above this industry median. Overall, AS Tallinna Vesi has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AS Tallinna Vesi's ROIC % compare to AWK and WTRG?
AS Tallinna Vesi's ROIC % of 6.21% can be compared against companies in the Utilities - Regulated industry. The industry median ROIC % is 4.17. AS Tallinna Vesi's value of 6.21% is 48.9% 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 an Utilities - Regulated company?
The median ROIC % among Utilities - Regulated companies is 4.17, based on 501 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. AS Tallinna Vesi's current ROIC % of 6.21% is 48.9% 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 AS Tallinna Vesi and its competitors. For the Utilities - Regulated industry, the median ROIC % is 4.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AS Tallinna Vesi's current ROIC % is 6.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AS Tallinna Vesi stock overvalued right now?
Based on GuruFocus' analysis, AS Tallinna Vesi (OTSE:TVE1T) is currently considered Modestly Undervalued. The stock's GF Value™ is €12.55, compared to a current price of €11.20 — trading 10.8% below its estimated fair value. The current ROIC % is 6.21% and 48.9% above the Utilities - Regulated industry median of 4.17. AS Tallinna Vesi's overall GF Score™ is 87/100 with 7 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 AS Tallinna Vesi (OTSE:TVE1T), the current ROIC % is 6.21% 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 AS Tallinna Vesi (OTSE:TVE1T) Overvalued in 2026?
Based on GuruFocus' analysis, AS Tallinna Vesi stock appears to be undervalued.
The current stock price of €11.20 is trading 10.8% below its estimated GF Value™ of €12.55.
GuruFocus considers AS Tallinna Vesi to be Modestly Undervalued.
Key valuation signals for OTSE:TVE1T:
ROIC %: 6.21%
GF Value™: €12.55 vs. price of €11.20 (10.8% below fair value)
Industry Position: 48.9% above the Utilities - Regulated median
No single metric tells the full story. See the OTSE:TVE1T stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AS Tallinna Vesi is a water utility company in Estonia. The business activity of the group is operated through two plants namely Ulemiste Water Treatment Plant and Paljassaare Wastewater Treatment Plant. It is engaged in water services which include the supply of water and treatment of wastewater services to people in Tallinn and in several neighboring municipalities of Tallinn. Further also engaged in construction and other services. In addition, the company also offers other services such as drinking water and waste water analysis, water and sewerage pipeline works, design pipelines and pipeline construction, and others. It has three segments Water services, Construction services, and Other services. It generates the majority of its revenue from Water services segment.
87GF Score
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