ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Blue Owl Capital's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.98%.
As of today (2026-06-26), Blue Owl Capital's WACC % is 7.97%. Blue Owl Capital's ROIC % is 3.49% (calculated using TTM income statement data).
Blue Owl Capital earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Blue Owl Capital (NYSE:OWL) 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, Blue Owl Capital's WACC % is 7.97%. Blue Owl Capital's ROIC % is 3.49% (calculated using TTM income statement data).
Blue Owl Capital 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.
Blue Owl Capital ROIC % Related Terms
Blue Owl Capital ROIC % Historical Data
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The historical data trend for Blue Owl Capital'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 Asset Management subindustry, Blue Owl Capital'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.
Blue Owl Capital ROIC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Blue Owl Capital's ROIC % distribution charts can be found below:
* The bar in red indicates where Blue Owl Capital'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.
Blue Owl Capital (OWL) has a ROIC % of 2.98% 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 Blue Owl Capital and its competitors.
Is Blue Owl Capital's ROIC % too high?
Blue Owl Capital's current ROIC % is 2.98%. The Asset Management industry median ROIC % is 1.21. Blue Owl Capital's value of 2.98% is 146.3% above this industry median. Overall, Blue Owl Capital has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Blue Owl Capital's ROIC % compare to TPG and PDI?
Blue Owl Capital's ROIC % of 2.98% can be compared against companies in the Asset Management industry. The industry median ROIC % is 1.21. Blue Owl Capital's value of 2.98% is 146.3% 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 Asset Management company?
The median ROIC % among Asset Management companies is 1.21, based on 709 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. Blue Owl Capital's current ROIC % of 2.98% is 146.3% 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 Blue Owl Capital and its competitors. For the Asset Management industry, the median ROIC % is 1.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Blue Owl Capital's current ROIC % is 2.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Blue Owl Capital stock overvalued right now?
Based on GuruFocus' analysis, Blue Owl Capital (OWL) is currently considered Possible Value Trap. The stock's GF Value™ is $22.45, compared to a current price of $8.51 — trading 62.1% below its estimated fair value. The current ROIC % is 2.98% and 146.3% above the Asset Management industry median of 1.21. Blue Owl Capital's overall GF Score™ is 62/100 with 8 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 Blue Owl Capital (OWL), the current ROIC % is 2.98% 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 Blue Owl Capital (OWL) Overvalued in 2026?
Based on GuruFocus' analysis, Blue Owl Capital stock appears to be undervalued.
The current stock price of $8.51 is trading 62.1% below its estimated GF Value™ of $22.45.
GuruFocus considers Blue Owl Capital to be Possible Value Trap.
Key valuation signals for OWL:
ROIC %: 2.98%
GF Value™: $22.45 vs. price of $8.51 (62.1% below fair value)
Industry Position: 146.3% above the Asset Management median
No single metric tells the full story. See the OWL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Blue Owl Capital is one of the world's largest alternative-asset managers, $307.4 billion in total managed assets, including $187.7 billion in fee-earning AUM, at the end of 2025. The company has three core business segments: global private equity, (with $69.1 billion in total AUM and $39.5 billion in fee-earning AUM), private credit ($157.7 billion/$99.5 billion), and real estate/real assets ($80.6 billion/$48.7 billion). The firm primarily serves institutional investors (68% of AUM) and high-net-worth individuals (32%). Blue Owl operates through more than 20 offices in the Americas, and the EMEA and Asia-Pacific regions.
62GF Score
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