ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Discovery World's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.23%.
As of today (2026-06-24), Discovery World's WACC % is 5.58%. Discovery World's ROIC % is -0.41% (calculated using TTM income statement data).
Discovery World earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Discovery World (PHS:DWC) 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, Discovery World's WACC % is 5.58%. Discovery World's ROIC % is -0.41% (calculated using TTM income statement data).
Discovery World 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.
Discovery World ROIC % Related Terms
Discovery World ROIC % Historical Data
* Premium members only.
The historical data trend for Discovery World'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 Resorts & Casinos subindustry, Discovery World'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.
Discovery World ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Discovery World's ROIC % distribution charts can be found below:
* The bar in red indicates where Discovery World'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.
Discovery World (PHS:DWC) has a ROIC % of 1.23% 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 Discovery World and its competitors.
Is Discovery World's ROIC % too high?
Discovery World's current ROIC % is 1.23%. The Travel & Leisure industry median ROIC % is 3.74. Discovery World's value of 1.23% is 67.1% below this industry median. Overall, Discovery World has a GF Score™ of 43/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Discovery World's ROIC % compare to LVS and MGM?
Discovery World's ROIC % of 1.23% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.74. Discovery World's value of 1.23% is 67.1% 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 Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.74, based on 833 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. Discovery World's current ROIC % of 1.23% is 67.1% 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 Discovery World and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Discovery World's current ROIC % is 1.23%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Discovery World stock overvalued right now?
Based on GuruFocus' analysis, Discovery World (PHS:DWC) is currently considered Modestly Undervalued. The stock's GF Value™ is ₱1.17, compared to a current price of ₱0.97 — trading 17.1% below its estimated fair value. The current ROIC % is 1.23% and 67.1% below the Travel & Leisure industry median of 3.74. Discovery World's overall GF Score™ is 43/100 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 Discovery World (PHS:DWC), the current ROIC % is 1.23% 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 Discovery World (PHS:DWC) Overvalued in 2026?
Based on GuruFocus' analysis, Discovery World stock appears to be undervalued.
The current stock price of ₱0.97 is trading 17.1% below its estimated GF Value™ of ₱1.17.
GuruFocus considers Discovery World to be Modestly Undervalued.
Key valuation signals for PHS:DWC:
ROIC %: 1.23%
GF Value™: ₱1.17 vs. price of ₱0.97 (17.1% below fair value)
Industry Position: 67.1% below the Travel & Leisure median
No single metric tells the full story. See the PHS:DWC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Discovery World Corporation is engaged in developing, investing in, owning, acquiring, administering, constructing, and operating hotels, resorts, apartelles, condominiums, townhouses, buildings, other tourist related structures, and their usual facilities, including the operation of transportation or shuttle services for tourists in all its various forms using automobiles, motor cars, buses, trucks, cruise lines, yachts, boats, luxury vessels, leisure, and sports crafts. The Company derives its revenues from the operations of Discovery Shores Boracay, Discovery Coron, Shoppes at Vanilla Beach, Discovery Fleet, Discovery Hospitality, and others.
43GF Score
Get the complete analysis for PHS:DWC
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:DWC has been successfully added to your 
