ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Pepco Group NV's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 16.58%.
As of today (2026-06-28), Pepco Group NV's WACC % is 12.94%. Pepco Group NV's ROIC % is 12.90% (calculated using TTM income statement data).
Pepco Group NV earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Pepco Group NV (WAR:PCO) 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, Pepco Group NV's WACC % is 12.94%. Pepco Group NV's ROIC % is 12.90% (calculated using TTM income statement data).
Pepco Group NV 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.
Pepco Group NV ROIC % Related Terms
Pepco Group NV ROIC % Historical Data
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The historical data trend for Pepco Group NV'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 Discount Stores subindustry, Pepco Group NV'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.
Pepco Group NV ROIC % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Pepco Group NV's ROIC % distribution charts can be found below:
* The bar in red indicates where Pepco Group NV's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Pepco Group NV (WAR:PCO) has a ROIC % of 16.58% 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 Pepco Group NV and its competitors.
Is Pepco Group NV's ROIC % too high?
Pepco Group NV's current ROIC % is 16.58%. The Retail - Defensive industry median ROIC % is 5.54. Pepco Group NV's value of 16.58% is 199.3% above this industry median. Overall, Pepco Group NV has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pepco Group NV's ROIC % compare to WMT and COST?
Pepco Group NV's ROIC % of 16.58% can be compared against companies in the Retail - Defensive industry. The industry median ROIC % is 5.54. Pepco Group NV's value of 16.58% is 199.3% 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 Retail - Defensive company?
The median ROIC % among Retail - Defensive companies is 5.54, based on 309 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. Pepco Group NV's current ROIC % of 16.58% is 199.3% 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 Pepco Group NV and its competitors. For the Retail - Defensive industry, the median ROIC % is 5.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pepco Group NV's current ROIC % is 16.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pepco Group NV stock overvalued right now?
Based on GuruFocus' analysis, Pepco Group NV (WAR:PCO) is currently considered Significantly Overvalued. The stock's GF Value™ is zł22.34, compared to a current price of zł37.25 — trading 66.7% above its estimated fair value. The current ROIC % is 16.58% and 199.3% above the Retail - Defensive industry median of 5.54. Pepco Group NV's overall GF Score™ is 67/100 with 4 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 Pepco Group NV (WAR:PCO), the current ROIC % is 16.58% 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 Pepco Group NV (WAR:PCO) Overvalued in 2026?
Based on GuruFocus' analysis, Pepco Group NV stock appears to be overvalued.
The current stock price of zł37.25 is trading 66.7% above its estimated GF Value™ of zł22.34.
GuruFocus considers Pepco Group NV to be Significantly Overvalued.
Key valuation signals for WAR:PCO:
ROIC %: 16.58%
GF Value™: zł22.34 vs. price of zł37.25 (66.7% above fair value)
Industry Position: 199.3% above the Retail - Defensive median
No single metric tells the full story. See the WAR:PCO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pepco Group NV is a pan-European, multi-format discount chain of multi-branch stores under the Pepco, Dealz, and Poundland brands. The group's stores offer clothing, home furnishings, including toys and seasonal products, as well as FMCG products. The revenue is derived from geographical segments, namely the United Kingdom, Poland, the Republic of Ireland, and the Rest of Europe.
67GF Score
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