ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. P3 Health Partners's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.00%.
As of today (2026-07-06), P3 Health Partners's WACC % is 23.31%. P3 Health Partners's ROIC % is -32.38% (calculated using TTM income statement data).
P3 Health Partners earns returns that do not match up to its cost of capital. It will destroy value as it grows.
P3 Health Partners (NAS:PIII) 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, P3 Health Partners's WACC % is 23.31%. P3 Health Partners's ROIC % is -32.38% (calculated using TTM income statement data).
P3 Health Partners 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.
P3 Health Partners ROIC % Related Terms
P3 Health Partners ROIC % Historical Data
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The historical data trend for P3 Health Partners'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 Medical Care Facilities subindustry, P3 Health Partners'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.
P3 Health Partners ROIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, P3 Health Partners's ROIC % distribution charts can be found below:
* The bar in red indicates where P3 Health Partners'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.
P3 Health Partners (PIII) has a ROIC % of 0.00% 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 P3 Health Partners and its competitors.
Is P3 Health Partners' ROIC % too high?
P3 Health Partners' current ROIC % is 0.00%. Overall, P3 Health Partners has a GF Score™ of 47/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does P3 Health Partners' ROIC % compare to EHSI and CDIX?
P3 Health Partners' ROIC % of 0.00% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.09. 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 Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.09, based on 667 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. 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 P3 Health Partners and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. P3 Health Partners's current ROIC % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is P3 Health Partners stock overvalued right now?
Based on GuruFocus' analysis, P3 Health Partners (PIII) is currently considered Modestly Overvalued. The stock's GF Value™ is $9.22, compared to a current price of $10.32 — trading 11.9% above its estimated fair value. The current ROIC % is 0.00%. P3 Health Partners' overall GF Score™ is 47/100 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 P3 Health Partners (PIII), the current ROIC % is 0.00% 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 P3 Health Partners (PIII) Overvalued in 2026?
Based on GuruFocus' analysis, P3 Health Partners stock appears to be overvalued.
The current stock price of $10.32 is trading 11.9% above its estimated GF Value™ of $9.22.
GuruFocus considers P3 Health Partners to be Modestly Overvalued.
Key valuation signals for PIII:
ROIC %: 0.00%
GF Value™: $9.22 vs. price of $10.32 (11.9% above fair value)
No single metric tells the full story. See the PIII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
P3 Health Partners Inc is a patient-centered and physician-led population health management company. P3's model aggregates and supports the community's existing healthcare resources to build a network of community providers working together to deliver coordinated and integrated care to patients with a shared commitment to improving patient outcomes, lowering cost, and delivering experience for all. It includes utilization management, care management, disease education, and maintenance of a quality improvement and quality management program for members assigned to the Company. The Company is also responsible for the credentialing of its providers, processing and payment of claims, and the establishment of a provider network for certain health plans.
47GF Score
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