Bayer AGXSWX:BAYN 48 3-Year ROIIC % is 2.35 as of Dec. 2025. GuruFocus rates XSWX:BAYN with a GF Score™ of 48/100 and a GF Value™ of CHF24.74 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 941 Drug Manufacturers companies, Bayer AG ranks worse than 53.13% on this metric.
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.
Bayer AG's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 2.35%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Bayer AG's 3-Year ROIIC % or its related term are showing as below:
XSWX:BAYN's 3-Year ROIIC % is ranked worse than 53.13% of 941
companies
in the Drug Manufacturers industry
Industry Median: 3.7
vs XSWX:BAYN: 2.35
Bayer AG (XSWX:BAYN) 3-Year ROIIC % Explanation
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.
Bayer AG 3-Year ROIIC % Related Terms
Bayer AG 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Bayer AG'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.
XSWX:BAYN vs LLY, JNJ, ABBV: 3-Year ROIIC % Comparison
For the Drug Manufacturers - General subindustry, Bayer AG'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.
Bayer AG 3-Year ROIIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Bayer AG's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Bayer AG's 3-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 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.
Bayer AG (XSWX:BAYN) has a 3-Year ROIIC % of 2.35 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 Bayer AG and its competitors. According to the industry distribution chart, Bayer AG ranks #500 out of 941 companies in the Drug Manufacturers industry, placing it in the top 53.1%.
Is Bayer AG's 3-Year ROIIC % too high?
Bayer AG's current 3-Year ROIIC % is 2.35. The Drug Manufacturers industry median 3-Year ROIIC % is 3.70. Bayer AG's value of 2.35 is 36.5% below this industry median. Based on the distribution chart, Bayer AG ranks #500 out of 941 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Bayer AG has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bayer AG's 3-Year ROIIC % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Bayer AG ranks #500 out of 941 companies for 3-Year ROIIC %. This places Bayer AG in the lower half of its industry. The industry median 3-Year ROIIC % is 3.70. Bayer AG's value of 2.35 is 36.5% below this benchmark. 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 Drug Manufacturers company?
The median 3-Year ROIIC % among Drug Manufacturers companies is 3.70, based on 941 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. Bayer AG's current 3-Year ROIIC % of 2.35 is 36.5% below 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 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 Bayer AG and its competitors. For the Drug Manufacturers industry, the median 3-Year ROIIC % is 3.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bayer AG's current 3-Year ROIIC % is 2.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bayer AG stock overvalued right now?
Based on GuruFocus' analysis, Bayer AG (XSWX:BAYN) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF24.74, compared to a current price of CHF42.49 — trading 71.7% above its estimated fair value. The current 3-Year ROIIC % is 2.35 and 36.5% below the Drug Manufacturers industry median of 3.70. Bayer AG's overall GF Score™ is 48/100 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 Bayer AG (XSWX:BAYN), the current 3-Year ROIIC % is 2.35 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 Bayer AG (XSWX:BAYN) Overvalued in 2026?
Based on GuruFocus' analysis, Bayer AG stock appears to be overvalued.
The current stock price of CHF42.49 is trading 71.7% above its estimated GF Value™ of CHF24.74.
GuruFocus considers Bayer AG to be Significantly Overvalued.
Key valuation signals for XSWX:BAYN:
3-Year ROIIC %: 2.35
GF Value™: CHF24.74 vs. price of CHF42.49 (71.7% above fair value)
Industry Position: 36.5% below the Drug Manufacturers median (#500 of 941)
No single metric tells the full story. See the XSWX:BAYN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bayer is a German healthcare and agriculture conglomerate. Healthcare provides close to half of the company's sales and includes pharmaceutical drugs (about 38% of total sales in 2025) as well as vitamins and other consumer healthcare products (13% of total). The firm's crop science business (47% of total) sells seeds, pesticides, herbicides, and fungicides, which was expanded through its 2018 acquisition of Monsanto.
48GF Score
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