ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Wharf Real Estate Investment Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 3.88%.
As of today (2026-06-25), Wharf Real Estate Investment Co's WACC % is 9.51%. Wharf Real Estate Investment Co's ROIC % is 3.83% (calculated using TTM income statement data).
Wharf Real Estate Investment Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Wharf Real Estate Investment Co (OTCPK:WRFRF) 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, Wharf Real Estate Investment Co's WACC % is 9.51%. Wharf Real Estate Investment Co's ROIC % is 3.83% (calculated using TTM income statement data).
Wharf Real Estate Investment Co 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.
Wharf Real Estate Investment Co ROIC % Related Terms
Wharf Real Estate Investment Co 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 Real Estate Services subindustry, Wharf Real Estate Investment Co'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.
Wharf Real Estate Investment Co ROIC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Wharf Real Estate Investment Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Wharf Real Estate Investment Co'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.
Wharf Real Estate Investment Co (WRFRF) has a ROIC % of 3.88% 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 Wharf Real Estate Investment Co and its competitors.
Is Wharf Real Estate Investment Co's ROIC % too high?
Wharf Real Estate Investment Co's current ROIC % is 3.88%. The Real Estate industry median ROIC % is 2.19. Wharf Real Estate Investment Co's value of 3.88% is 77.2% above this industry median. Overall, Wharf Real Estate Investment Co has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Wharf Real Estate Investment Co's ROIC % compare to CBRE and BEKE?
Wharf Real Estate Investment Co's ROIC % of 3.88% can be compared against companies in the Real Estate industry. The industry median ROIC % is 2.19. Wharf Real Estate Investment Co's value of 3.88% is 77.2% 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 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. Wharf Real Estate Investment Co's current ROIC % of 3.88% is 77.2% 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 Wharf Real Estate Investment Co 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. Wharf Real Estate Investment Co's current ROIC % is 3.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wharf Real Estate Investment Co stock overvalued right now?
Based on GuruFocus' analysis, Wharf Real Estate Investment Co (WRFRF) is currently considered Modestly Undervalued. The stock's GF Value™ is $3.10, compared to a current price of $2.70 — trading 12.9% below its estimated fair value. The current ROIC % is 3.88% and 77.2% above the Real Estate industry median of 2.19. Wharf Real Estate Investment Co's overall GF Score™ is 70/100 with 3 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 Wharf Real Estate Investment Co (WRFRF), the current ROIC % is 3.88% 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 Wharf Real Estate Investment Co (WRFRF) Overvalued in 2026?
Based on GuruFocus' analysis, Wharf Real Estate Investment Co stock appears to be undervalued.
The current stock price of $2.70 is trading 12.9% below its estimated GF Value™ of $3.10.
GuruFocus considers Wharf Real Estate Investment Co to be Modestly Undervalued.
Key valuation signals for WRFRF:
ROIC %: 3.88%
GF Value™: $3.10 vs. price of $2.70 (12.9% below fair value)
Industry Position: 77.2% above the Real Estate median
No single metric tells the full story. See the WRFRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wharf Real Estate Investment Co Business Description
Wharf spun off Wharf Real Estate Investment Co. in November 2017. It is a leading property investor with a focus on prime retail assets in Hong Kong. Rental income from flagship assets Harbour City and Times Square accounts for over 85% of revenue. The balance comes from Plaza Hollywood, The Murray, and Marco Polo hotels, and two offices in the central business district. The group also holds two malls in Singapore and a mixed development in Suzhou. Wharf was originally a shipping company but transformed into a property developer and investor in the 1960s by redeveloping its unused industrial assets, many located in city center and waterfront locations. The Harbour City site had been wharfs, and the Times Square site was a tram depot in the 1970s. Wheelock holds a 49% stake in the group.
70GF Score
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