ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Forbo Holding AG's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 9.03%.
As of today (2026-06-25), Forbo Holding AG's WACC % is 8.80%. Forbo Holding AG's ROIC % is 8.78% (calculated using TTM income statement data).
Forbo Holding AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Forbo Holding AG (XSWX:FORN) 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, Forbo Holding AG's WACC % is 8.80%. Forbo Holding AG's ROIC % is 8.78% (calculated using TTM income statement data).
Forbo Holding 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.
Forbo Holding AG ROIC % Related Terms
Forbo Holding AG ROIC % Historical Data
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The historical data trend for Forbo Holding 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, Forbo Holding 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.
Forbo Holding AG ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Forbo Holding AG's ROIC % distribution charts can be found below:
* The bar in red indicates where Forbo Holding AG'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.
Forbo Holding AG (XSWX:FORN) has a ROIC % of 9.03% 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 Forbo Holding AG and its competitors.
Is Forbo Holding AG's ROIC % too high?
Forbo Holding AG's current ROIC % is 9.03%. The Construction industry median ROIC % is 4.65. Forbo Holding AG's value of 9.03% is 94.2% above this industry median. Overall, Forbo Holding AG has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Forbo Holding AG's ROIC % compare to TT and JCI?
Forbo Holding AG's ROIC % of 9.03% can be compared against companies in the Construction industry. The industry median ROIC % is 4.65. Forbo Holding AG's value of 9.03% is 94.2% 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 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. Forbo Holding AG's current ROIC % of 9.03% is 94.2% 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 Forbo Holding 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. Forbo Holding AG's current ROIC % is 9.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forbo Holding AG stock overvalued right now?
Based on GuruFocus' analysis, Forbo Holding AG (XSWX:FORN) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF879.59, compared to a current price of CHF739.00 — trading 16% below its estimated fair value. The current ROIC % is 9.03% and 94.2% above the Construction industry median of 4.65. Forbo Holding AG's overall GF Score™ is 73/100 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 Forbo Holding AG (XSWX:FORN), the current ROIC % is 9.03% 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 Forbo Holding AG (XSWX:FORN) Overvalued in 2026?
Based on GuruFocus' analysis, Forbo Holding AG stock appears to be undervalued.
The current stock price of CHF739.00 is trading 16% below its estimated GF Value™ of CHF879.59.
GuruFocus considers Forbo Holding AG to be Modestly Undervalued.
Key valuation signals for XSWX:FORN:
ROIC %: 9.03%
GF Value™: CHF879.59 vs. price of CHF739.00 (16% below fair value)
Industry Position: 94.2% above the Construction median
No single metric tells the full story. See the XSWX:FORN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Forbo Holding AG manufactures and sells flooring and movement systems. The company organizes itself into two segments based on product type. The Flooring Systems segment, which generates the majority of revenue, sells commercial and residential floor coverings, entrance flooring systems, and building and construction flooring adhesives to the construction and remodeling industries. The Movement Systems segment sells conveyor and processing belts, plastic modular belts, power transmission belts, and flat modular belts, to the food, automotive, and fitness equipment industries. The majority of revenue comes from Europe, and also has its presence in Americas and Asia/Pacific and Africa.
73GF Score
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