ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Ayala Land's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.05%.
As of today (2026-06-25), Ayala Land's WACC % is 7.34%. Ayala Land's ROIC % is 6.26% (calculated using TTM income statement data).
Ayala Land earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Ayala Land (PHS:ALI) 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, Ayala Land's WACC % is 7.34%. Ayala Land's ROIC % is 6.26% (calculated using TTM income statement data).
Ayala Land 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.
Ayala Land ROIC % Related Terms
Ayala Land ROIC % Historical Data
* Premium members only.
The historical data trend for Ayala Land'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 Real Estate - Development subindustry, Ayala Land'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.
Ayala Land ROIC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Ayala Land's ROIC % distribution charts can be found below:
* The bar in red indicates where Ayala Land'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.
Ayala Land (PHS:ALI) has a ROIC % of 5.05% 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 Ayala Land and its competitors.
Is Ayala Land's ROIC % too high?
Ayala Land's current ROIC % is 5.05%. The Real Estate industry median ROIC % is 2.19. Ayala Land's value of 5.05% is 130.6% above this industry median. Overall, Ayala Land has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ayala Land's ROIC % compare to competitors?
Ayala Land's ROIC % of 5.05% can be compared against companies in the Real Estate industry. The industry median ROIC % is 2.19. Ayala Land's value of 5.05% is 130.6% 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 Real Estate company?
The median ROIC % among Real Estate companies is 2.19, based on 1,757 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. Ayala Land's current ROIC % of 5.05% is 130.6% 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 Ayala Land and its competitors. For the Real Estate industry, the median ROIC % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ayala Land's current ROIC % is 5.05%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ayala Land stock overvalued right now?
Based on GuruFocus' analysis, Ayala Land (PHS:ALI) is currently considered Possible Value Trap. The stock's GF Value™ is ₱29.33, compared to a current price of ₱14.80 — trading 49.5% below its estimated fair value. The current ROIC % is 5.05% and 130.6% above the Real Estate industry median of 2.19. Ayala Land's overall GF Score™ is 70/100 with 5 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 Ayala Land (PHS:ALI), the current ROIC % is 5.05% 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 Ayala Land (PHS:ALI) Overvalued in 2026?
Based on GuruFocus' analysis, Ayala Land stock appears to be undervalued.
The current stock price of ₱14.80 is trading 49.5% below its estimated GF Value™ of ₱29.33.
GuruFocus considers Ayala Land to be Possible Value Trap.
Key valuation signals for PHS:ALI:
ROIC %: 5.05%
GF Value™: ₱29.33 vs. price of ₱14.80 (49.5% below fair value)
Industry Position: 130.6% above the Real Estate median
No single metric tells the full story. See the PHS:ALI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ayala Land Inc is engaged in land acquisition, planning, and development of large scale, integrated, mixed use and sustainable estates, industrial estates, development and sale of residential and office condominiums, house and lots, and commercial and industrial lots, development and lease of shopping centers and offices, co working spaces and standard factory buildings and warehouses, and the development, management and operation of hotels and resorts and co living spaces. The Company is also engaged in construction, property management and retail electricity supply. Its segments include Property development, which generates maximum revenue, International, Shopping centers, Offices, Industrial Real Estate, Hotels and resorts, Construction, and Property management and others.
70GF Score
Get the complete analysis for PHS:ALI
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PHS:ALI has been successfully added to your 
