Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Dave & Buster's Entertainment's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2026 was 2.82%.
As of today (2026-08-08), Dave & Buster's Entertainment's WACC % is 5.03%. Dave & Buster's Entertainment's ROIC % is 1.60% (calculated using TTM income statement data).
Dave & Buster's Entertainment earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Dave & Buster's Entertainment (NAS:PLAY) 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, Dave & Buster's Entertainment's WACC % is 5.03%. Dave & Buster's Entertainment's ROIC % is 1.60% (calculated using TTM income statement data).
Dave & Buster's Entertainment 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.
Dave & Buster's Entertainment ROIC % Related Terms
Dave & Buster's Entertainment ROIC % Historical Data
* 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 Entertainment subindustry, Dave & Buster's Entertainment'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.
Dave & Buster's Entertainment ROIC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Dave & Buster's Entertainment's ROIC % distribution charts can be found below:
* The bar in red indicates where Dave & Buster's Entertainment's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Apr. 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.
Dave & Buster's Entertainment (PLAY) has a ROIC % of 2.82% as of Apr. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Dave & Buster's Entertainment and its competitors.
Is Dave & Buster's Entertainment's ROIC % too high?
Dave & Buster's Entertainment's current ROIC % is 2.82%. The Media - Diversified industry median ROIC % is 1.45. Dave & Buster's Entertainment's value of 2.82% is 95.2% above this industry median. Overall, Dave & Buster's Entertainment has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Dave & Buster's Entertainment's ROIC % compare to AENT and STRZ?
Dave & Buster's Entertainment's ROIC % of 2.82% can be compared against companies in the Media - Diversified industry. The industry median ROIC % is 1.45. Dave & Buster's Entertainment's value of 2.82% is 95.2% 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 Media - Diversified company?
The median ROIC % among Media - Diversified companies is 1.45, based on 1,008 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. Dave & Buster's Entertainment's current ROIC % of 2.82% is 95.2% 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 Dave & Buster's Entertainment and its competitors. For the Media - Diversified industry, the median ROIC % is 1.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dave & Buster's Entertainment's current ROIC % is 2.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dave & Buster's Entertainment stock overvalued right now?
Based on GuruFocus' analysis, Dave & Buster's Entertainment (PLAY) is currently considered Possible Value Trap. The stock's GF Value™ is $35.79, compared to a current price of $10.27 — trading 71.3% below its estimated fair value. The current ROIC % is 2.82% and 95.2% above the Media - Diversified industry median of 1.45. Dave & Buster's Entertainment's overall GF Score™ is 65/100 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 Dave & Buster's Entertainment (PLAY), the current ROIC % is 2.82% as of Apr. 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 Dave & Buster's Entertainment (PLAY) Overvalued in 2026?
Based on GuruFocus' analysis, Dave & Buster's Entertainment stock appears to be undervalued.
The current stock price of $10.27 is trading 71.3% below its estimated GF Value™ of $35.79.
GuruFocus considers Dave & Buster's Entertainment to be Possible Value Trap.
Key valuation signals for PLAY:
ROIC %: 2.82%
GF Value™: $35.79 vs. price of $10.27 (71.3% below fair value)
Industry Position: 95.2% above the Media - Diversified median
No single metric tells the full story. See the PLAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dave & Buster's Entertainment Inc is an owner and operator of entertainment and dining venues in North America that offer experiences for both adults and families under the Dave & Buster's and Main Event brands. The company combines various forms of entertainment, including games, bowling, and watching live sports and other televised events, with a full menu of entrees and appetizers and a selection of alcoholic and non alcoholic beverages, all in one location. Its concept focuses on providing customers the opportunity to Eat, Drink, Play, and Watch, appealing to a balanced mix of adults, families, and teenagers. The company also operates internationally in the early stage as a franchisor of the Dave & Buster's brand.
65GF Score
Get the complete analysis for PLAY
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
PLAY has been successfully added to your 
