ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Rafael Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2026 was -47.65%.
As of today (2026-06-26), Rafael Holdings's WACC % is 8.99%. Rafael Holdings's ROIC % is -60.88% (calculated using TTM income statement data).
Rafael Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Rafael Holdings (NYSE:RFL) 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, Rafael Holdings's WACC % is 8.99%. Rafael Holdings's ROIC % is -60.88% (calculated using TTM income statement data).
Rafael Holdings 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.
Rafael Holdings ROIC % Related Terms
Rafael Holdings ROIC % Historical Data
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The historical data trend for Rafael Holdings'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 Services subindustry, Rafael Holdings'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.
Rafael Holdings ROIC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Rafael Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Rafael Holdings'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.
Rafael Holdings (RFL) has a ROIC % of -47.65% 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 Rafael Holdings and its competitors.
Is Rafael Holdings' ROIC % too high?
Rafael Holdings' current ROIC % is -47.65%. Overall, Rafael Holdings has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rafael Holdings' ROIC % compare to ASPS and MAYS?
Rafael Holdings' ROIC % of -47.65% can be compared against companies in the Real Estate industry. The industry median ROIC % is 2.19. 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. 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 Rafael Holdings 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. Rafael Holdings's current ROIC % is -47.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rafael Holdings stock overvalued right now?
Based on GuruFocus' analysis, Rafael Holdings (RFL) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.35, compared to a current price of $2.68 — trading 98.1% above its estimated fair value. The current ROIC % is -47.65%. Rafael Holdings' overall GF Score™ is 48/100 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 Rafael Holdings (RFL), the current ROIC % is -47.65% 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 Rafael Holdings (RFL) Overvalued in 2026?
Based on GuruFocus' analysis, Rafael Holdings stock appears to be overvalued.
The current stock price of $2.68 is trading 98.1% above its estimated GF Value™ of $1.35.
GuruFocus considers Rafael Holdings to be Significantly Overvalued.
Key valuation signals for RFL:
ROIC %: -47.65%
GF Value™: $1.35 vs. price of $2.68 (98.1% above fair value)
No single metric tells the full story. See the RFL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rafael Holdings Inc is a biotechnology firm that develops pharmaceuticals and invests in clinical and early-stage companies in pharmaceuticals and medical devices. Trappsol Cyclo is in Phase 3 trials for Niemann-Pick Disease Type C1. The company focuses on completing these trials, seeking regulatory approval, and commercializing the product. It also invests in portfolio companies including Cyclo, LipoMedix, Barer, Rafael Medical Devices, Cornerstone, and Day Three, targeting therapeutics for unmet medical needs. The business operates through three segments: Healthcare, Infusion Technology, and Real Estate. Operations are based in the United States and Israel.
48GF Score
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