ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Raffles Education's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 1.28%.
As of today (2026-06-26), Raffles Education's WACC % is 7.16%. Raffles Education's ROIC % is 0.04% (calculated using TTM income statement data).
Raffles Education earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Raffles Education's WACC % is 7.16%. Raffles Education's ROIC % is 0.04% (calculated using TTM income statement data).
Raffles Education 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.
Raffles Education ROIC % Related Terms
Raffles Education ROIC % Historical Data
* Premium members only.
The historical data trend for Raffles Education'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 Education & Training Services subindustry, Raffles Education'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.
Raffles Education ROIC % vs Education Industry
For the Education industry and Consumer Defensive sector, Raffles Education's ROIC % distribution charts can be found below:
* The bar in red indicates where Raffles Education's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) 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.
Raffles Education (RFLFF) has a ROIC % of 1.28% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Raffles Education and its competitors.
Is Raffles Education's ROIC % too high?
Raffles Education's current ROIC % is 1.28%. The Education industry median ROIC % is 5.00. Raffles Education's value of 1.28% is 74.4% below this industry median. Overall, Raffles Education has a GF Score™ of 42/100, reflecting its overall financial health beyond just this single metric.
How does Raffles Education's ROIC % compare to EDU and TAL?
Raffles Education's ROIC % of 1.28% can be compared against companies in the Education industry. The industry median ROIC % is 5.00. Raffles Education's value of 1.28% is 74.4% 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 an Education company?
The median ROIC % among Education companies is 5.00, based on 261 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. Raffles Education's current ROIC % of 1.28% is 74.4% 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 Raffles Education and its competitors. For the Education industry, the median ROIC % is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Raffles Education's current ROIC % is 1.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Raffles Education stock overvalued right now?
Raffles Education (RFLFF) has a current ROIC % of 1.28%. The stock's GF Value™ is $0.02, compared to a current price of $0.05 — trading 140.2% above its estimated fair value. The current ROIC % is 1.28% and 74.4% below the Education industry median of 5.00. Raffles Education's overall GF Score™ is 42/100 with 6 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 Raffles Education (RFLFF), the current ROIC % is 1.28% as of Dec. 2025. 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 Raffles Education (RFLFF) Overvalued in 2026?
Based on GuruFocus' analysis, Raffles Education stock appears to be overvalued.
The current stock price of $0.05 is trading 140.2% above its estimated GF Value™ of $0.02.
Key valuation signals for RFLFF:
ROIC %: 1.28%
GF Value™: $0.02 vs. price of $0.05 (140.2% above fair value)
Industry Position: 74.4% below the Education median
No single metric tells the full story. See the RFLFF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Raffles Education Ltd operates as an investment holding company, which engages in providing business and management consultancy services. It operates through the following business segments: Education, Education Facilities Rental Service, Real Estate Investment and Development, and Corporate and Others. The Education segment offers students a range of degrees, diploma and full-time certification programmes in design and business-oriented disciplines at the post-secondary level. The Education Facilities Rental Service segment refers to the OUCHK engaging in education facilities leasing and commercial leasing for supporting facilities. The Real Estate Investment and Development segment participates in real estate investments and development.
42GF Score
Get the complete analysis for RFLFF
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
RFLFF has been successfully added to your 
