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3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Clearwater Analytics Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -0.43%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
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.
Clearwater Analytics Holdings 3-Year ROIIC % Related Terms
Clearwater Analytics Holdings 3-Year ROIIC % 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.
CWAN vs IDCC, CHYM, TTAN: 3-Year ROIIC % Comparison
For the Software - Application subindustry, Clearwater Analytics Holdings's 3-Year ROIIC %, along with its competitors' market caps and 3-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.
Clearwater Analytics Holdings 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Clearwater Analytics Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Clearwater Analytics Holdings's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( -6.2287344 (Dec. 2025) - 5.117 (Dec. 2022) )
/
( 2854.717 (Dec. 2025) - 188.439 (Dec. 2022) )
=
-11.3457344
/
2666.278
=
-0.43%***
* 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 3-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.
Clearwater Analytics Holdings (CWAN) has a 3-Year ROIIC % of -0.43 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Clearwater Analytics Holdings and its competitors. According to the industry distribution chart, Clearwater Analytics Holdings ranks #1569 out of 2623 companies in the Software industry, placing it in the top 59.8%.
Is Clearwater Analytics Holdings' 3-Year ROIIC % too high?
Clearwater Analytics Holdings' current 3-Year ROIIC % is -0.43. Based on the distribution chart, Clearwater Analytics Holdings ranks #1569 out of 2623 companies in the Software industry, which is below the industry midpoint. Overall, Clearwater Analytics Holdings has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Clearwater Analytics Holdings' 3-Year ROIIC % compare to IDCC and CHYM?
According to the Software industry distribution chart, Clearwater Analytics Holdings ranks #1569 out of 2623 companies for 3-Year ROIIC %. This places Clearwater Analytics Holdings in the lower half of its industry. The industry median 3-Year ROIIC % is 5.34. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Software company?
The median 3-Year ROIIC % among Software companies is 5.34, based on 2,623 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Clearwater Analytics Holdings and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Clearwater Analytics Holdings's current 3-Year ROIIC % is -0.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Clearwater Analytics Holdings stock overvalued right now?
Based on GuruFocus' analysis, Clearwater Analytics Holdings (CWAN) is currently considered Modestly Undervalued. The stock's GF Value™ is $32.13, compared to a current price of $24.56 — trading 23.6% below its estimated fair value. The current 3-Year ROIIC % is -0.43. Clearwater Analytics Holdings' overall GF Score™ is 60/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Clearwater Analytics Holdings (CWAN), the current 3-Year ROIIC % is -0.43 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 Clearwater Analytics Holdings (CWAN) Overvalued in 2026?
Based on GuruFocus' analysis, Clearwater Analytics Holdings stock appears to be undervalued.
The current stock price of $24.56 is trading 23.6% below its estimated GF Value™ of $32.13.
GuruFocus considers Clearwater Analytics Holdings to be Modestly Undervalued.
Key valuation signals for CWAN:
3-Year ROIIC %: -0.43
GF Value™: $32.13 vs. price of $24.56 (23.6% below fair value)
No single metric tells the full story. See the CWAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Clearwater Analytics Holdings Business Description
Clearwater Analytics describes its mission as aiming to be the world's most trusted and comprehensive technology platform for the entire investment cycle. Clearwater has historically focused on back-office functions such as investment accounting, but with acquisitions such Enfusion, Beacon, and Bistro, the firm has broadened its focus with front-office and middle-office capabilities. Clearwater primarily serves insurance companies, asset managers, hedge funds, and corporate treasuries. Pro forma for Enfusion, about 76% of Clearwater's revenue is generated in the US.
60GF Score
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