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.
Valens Semiconductor's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 364.80%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Valens Semiconductor's 3-Year ROIIC % or its related term are showing as below:
VLN's 3-Year ROIIC % is ranked better than 97.09% of 996
companies
in the Semiconductors industry
Industry Median: -0.25
vs VLN: 364.80
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.
Valens Semiconductor 3-Year ROIIC % Related Terms
Valens Semiconductor 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Valens Semiconductor's 3-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 Semiconductors subindustry, Valens Semiconductor'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.
Valens Semiconductor 3-Year ROIIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Valens Semiconductor's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Valens Semiconductor's 3-Year ROIIC % falls into.
Valens Semiconductor's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( -34.224 (Dec. 2025) - -28.369 (Dec. 2022) )
/
( 32.098 (Dec. 2025) - 33.703 (Dec. 2022) )
=
-5.855
/
-1.605
=
364.80%***
* 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.
Valens Semiconductor (VLN) has a 3-Year ROIIC % of 364.80 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 Valens Semiconductor and its competitors. According to the industry distribution chart, Valens Semiconductor ranks #29 out of 996 companies in the Semiconductors industry, placing it in the top 2.9%.
Is Valens Semiconductor's 3-Year ROIIC % too high?
Valens Semiconductor's current 3-Year ROIIC % is 364.80. Based on the distribution chart, Valens Semiconductor ranks #29 out of 996 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Valens Semiconductor has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Valens Semiconductor's 3-Year ROIIC % compare to GCTS and MX?
According to the Semiconductors industry distribution chart, Valens Semiconductor ranks #29 out of 996 companies for 3-Year ROIIC %. This places Valens Semiconductor in the top 3% of its industry — outperforming the majority of peers. 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 Semiconductors company?
A good 3-Year ROIIC % depends on the Semiconductors industry context. 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 Valens Semiconductor and its competitors. Valens Semiconductor's current 3-Year ROIIC % is 364.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Valens Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Valens Semiconductor (VLN) is currently considered Fairly Valued. The stock's GF Value™ is $2.08, compared to a current price of $2.07 — trading 0.5% below its estimated fair value. The current 3-Year ROIIC % is 364.80. Valens Semiconductor's overall GF Score™ is 70/100 with 6 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 Valens Semiconductor (VLN), the current 3-Year ROIIC % is 364.80 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 Valens Semiconductor (VLN) Overvalued in 2026?
Based on GuruFocus' analysis, Valens Semiconductor stock appears to be undervalued.
The current stock price of $2.07 is trading 0.5% below its estimated GF Value™ of $2.08.
GuruFocus considers Valens Semiconductor to be Fairly Valued.
Key valuation signals for VLN:
3-Year ROIIC %: 364.80
GF Value™: $2.08 vs. price of $2.07 (0.5% below fair value)
No single metric tells the full story. See the VLN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Valens Semiconductor Ltd is a provider of semiconductor products, pushing the boundaries of connectivity by enabling long-reach, high-speed video, and data transmission for the audio-video and automotive industries. It operates in two segments: Cross Industry Business, which includes solutions for the non-automotive verticals, including audio-video, industrial, machine vision and medical markets, that deliver superior, plug-and-play convergence and distribution of different interfaces, through a single long-distance category cable; and Automotive segment products enable safe and resilient high-speed in-vehicle connectivity for car architectures, realizing the vision of connected and autonomous cars. The company's geographical revenue is derived from Hungary.
70GF Score
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