Toll BrothersTOL +0.83%94 10-Year ROIIC % is 28.94 as of Oct. 2025. GuruFocus rates TOL with a GF Score™ of 94/100 and a GF Value™ of $136.79 (Fairly Valued). The stock has 4 warning signs investors should review. Among 82 Homebuilding & Construction companies, Toll Brothers ranks better than 86.59% on this metric.
10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
Toll Brothers's 10-Year ROIIC % for the quarter that ended in Oct. 2025 was 28.94%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Toll Brothers's 10-Year ROIIC % or its related term are showing as below:
TOL's 10-Year ROIIC % is ranked better than 86.59% of 82
companies
in the Homebuilding & Construction industry
Industry Median: 4.59
vs TOL: 28.94
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Toll Brothers 10-Year ROIIC % Related Terms
Toll Brothers 10-Year ROIIC % Historical Data
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The historical data trend for Toll Brothers's 10-Year ROIIC % 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 Residential Construction subindustry, Toll Brothers's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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.
Toll Brothers 10-Year ROIIC % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Toll Brothers's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Toll Brothers's 10-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Toll Brothers (TOL) has a 10-Year ROIIC % of 28.94 as of Oct. 2025. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Toll Brothers and its competitors. According to the industry distribution chart, Toll Brothers ranks #11 out of 82 companies in the Homebuilding & Construction industry, placing it in the top 13.4%.
Is Toll Brothers' 10-Year ROIIC % too high?
Toll Brothers' current 10-Year ROIIC % is 28.94. The Homebuilding & Construction industry median 10-Year ROIIC % is 4.59. Toll Brothers' value of 28.94 is 530.5% above this industry median. Based on the distribution chart, Toll Brothers ranks #11 out of 82 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Toll Brothers has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Toll Brothers' 10-Year ROIIC % compare to NVR and LEN?
According to the Homebuilding & Construction industry distribution chart, Toll Brothers ranks #11 out of 82 companies for 10-Year ROIIC %. This places Toll Brothers in the top 13% of its industry — outperforming the majority of peers. The industry median 10-Year ROIIC % is 4.59. Toll Brothers' value of 28.94 is 530.5% 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 10-Year ROIIC % for a Homebuilding & Construction company?
The median 10-Year ROIIC % among Homebuilding & Construction companies is 4.59, based on 82 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Toll Brothers's current 10-Year ROIIC % of 28.94 is 530.5% 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 10-Year ROIIC % mean?
A high 10-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Toll Brothers and its competitors. For the Homebuilding & Construction industry, the median 10-Year ROIIC % is 4.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toll Brothers's current 10-Year ROIIC % is 28.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toll Brothers stock overvalued right now?
Based on GuruFocus' analysis, Toll Brothers (TOL) is currently considered Fairly Valued. The stock's GF Value™ is $136.79, compared to a current price of $149.49 — trading 9.3% above its estimated fair value. The current 10-Year ROIIC % is 28.94 and 530.5% above the Homebuilding & Construction industry median of 4.59. Toll Brothers' overall GF Score™ is 94/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 10-Year ROIIC % calculated?
10-Year ROIIC % is calculated from a company's financial statements. For Toll Brothers (TOL), the current 10-Year ROIIC % is 28.94 as of Oct. 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 Toll Brothers (TOL) Overvalued in 2026?
Based on GuruFocus' analysis, Toll Brothers stock appears to be overvalued.
The current stock price of $149.49 is trading 9.3% above its estimated GF Value™ of $136.79.
GuruFocus considers Toll Brothers to be Fairly Valued.
Key valuation signals for TOL:
10-Year ROIIC %: 28.94
GF Value™: $136.79 vs. price of $149.49 (9.3% above fair value)
Industry Position: 530.5% above the Homebuilding & Construction median (#11 of 82)
No single metric tells the full story. See the TOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toll Brothers is the leading luxury homebuilder in the United States with an average sale price well above public competitors'. The company operates in over 60 markets across 24 states and caters to move-up, active-adult, and second-homebuyers. Toll Brothers consistently ranks as a top 10 builder within the US according to total home closings. Traditional homebuilding operations represent most of the company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers across the US It has its headquarters in Horsham, Pennsylvania.
94GF Score
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