ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Villeroy & Boch AG's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.29%.
As of today (2026-06-26), Villeroy & Boch AG's WACC % is 6.61%. Villeroy & Boch AG's ROIC % is 2.01% (calculated using TTM income statement data).
Villeroy & Boch AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Villeroy & Boch AG (WBO:VIB3) 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, Villeroy & Boch AG's WACC % is 6.61%. Villeroy & Boch AG's ROIC % is 2.01% (calculated using TTM income statement data).
Villeroy & Boch AG 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.
Villeroy & Boch AG ROIC % Related Terms
Villeroy & Boch AG ROIC % Historical Data
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The historical data trend for Villeroy & Boch AG'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 Building Products & Equipment subindustry, Villeroy & Boch AG'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.
Villeroy & Boch AG ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Villeroy & Boch AG's ROIC % distribution charts can be found below:
* The bar in red indicates where Villeroy & Boch AG'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.
Villeroy & Boch AG (WBO:VIB3) has a ROIC % of 2.29% 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 Villeroy & Boch AG and its competitors.
Is Villeroy & Boch AG's ROIC % too high?
Villeroy & Boch AG's current ROIC % is 2.29%. The Construction industry median ROIC % is 4.65. Villeroy & Boch AG's value of 2.29% is 50.8% below this industry median. Overall, Villeroy & Boch AG has a GF Score™ of 52/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Villeroy & Boch AG's ROIC % compare to TT and JCI?
Villeroy & Boch AG's ROIC % of 2.29% can be compared against companies in the Construction industry. The industry median ROIC % is 4.65. Villeroy & Boch AG's value of 2.29% is 50.8% 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 a Construction company?
The median ROIC % among Construction companies is 4.65, based on 1,755 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. Villeroy & Boch AG's current ROIC % of 2.29% is 50.8% 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 Villeroy & Boch AG and its competitors. For the Construction industry, the median ROIC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Villeroy & Boch AG's current ROIC % is 2.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Villeroy & Boch AG stock overvalued right now?
Based on GuruFocus' analysis, Villeroy & Boch AG (WBO:VIB3) is currently considered Fairly Valued. The stock's GF Value™ is €16.86, compared to a current price of €15.90 — trading 5.7% below its estimated fair value. The current ROIC % is 2.29% and 50.8% below the Construction industry median of 4.65. Villeroy & Boch AG's overall GF Score™ is 52/100 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 Villeroy & Boch AG (WBO:VIB3), the current ROIC % is 2.29% 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 Villeroy & Boch AG (WBO:VIB3) Overvalued in 2026?
Based on GuruFocus' analysis, Villeroy & Boch AG stock appears to be undervalued.
The current stock price of €15.90 is trading 5.7% below its estimated GF Value™ of €16.86.
GuruFocus considers Villeroy & Boch AG to be Fairly Valued.
Key valuation signals for WBO:VIB3:
ROIC %: 2.29%
GF Value™: €16.86 vs. price of €15.90 (5.7% below fair value)
Industry Position: 50.8% below the Construction median
No single metric tells the full story. See the WBO:VIB3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Villeroy & Boch AG is a manufacturer of home furnishing products based in Germany. The firm's activities are broadly categorized into two segments. The Bathroom and Wellness Division produces a variety of items, including ceramic sanitary ware, ceramic kitchen sinks, bathroom furniture, shower tubs, whirlpools, as well as bath and kitchen fittings and accessories. This division also offers shower toilets, installation systems, outdoor whirlpools, and a range of accessories. Meanwhile, the Dining & Lifestyle Division provides an extensive selection of tableware, glassware, and cutlery designed for stylish dining, along with home accessories, gifts, and convenience-oriented products made from porcelain. The majority of the firm's revenue comes from the Bathroom and Wellness Division.
52GF Score
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