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5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Viavi Solutions's 5-Year ROIIC % for the quarter that ended in Jun. 2025 was -0.13%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Viavi Solutions's 5-Year ROIIC % or its related term are showing as below:
VIAV's 5-Year ROIIC % is ranked worse than 57.1% of 2275
companies
in the Hardware industry
Industry Median: 3.34
vs VIAV: -0.13
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.
Viavi Solutions 5-Year ROIIC % Related Terms
Viavi Solutions 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Viavi Solutions's 5-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.
VIAV vs ZBRA, AAOI, VSAT: 5-Year ROIIC % Comparison
For the Communication Equipment subindustry, Viavi Solutions's 5-Year ROIIC %, along with its competitors' market caps and 5-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.
Viavi Solutions 5-Year ROIIC % vs Hardware Industry
For the Hardware industry and Technology sector, Viavi Solutions's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Viavi Solutions's 5-Year ROIIC % falls into.
Viavi Solutions's 5-Year ROIIC % for the quarter that ended in Jun. 2025 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 51.5652 (Jun. 2025) - 52.12992 (Jun. 2020) )
/
( 1508.5 (Jun. 2025) - 1083.8 (Jun. 2020) )
=
-0.56471999999999
/
424.7
=
-0.13%***
* 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 5-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.
Viavi Solutions (VIAV) has a 5-Year ROIIC % of -0.13 as of Jun. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Viavi Solutions and its competitors. According to the industry distribution chart, Viavi Solutions ranks #1299 out of 2275 companies in the Hardware industry, placing it in the top 57.1%.
Is Viavi Solutions' 5-Year ROIIC % too high?
Viavi Solutions' current 5-Year ROIIC % is -0.13. Based on the distribution chart, Viavi Solutions ranks #1299 out of 2275 companies in the Hardware industry, which is below the industry midpoint. Overall, Viavi Solutions has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Viavi Solutions' 5-Year ROIIC % compare to ZBRA and AAOI?
According to the Hardware industry distribution chart, Viavi Solutions ranks #1299 out of 2275 companies for 5-Year ROIIC %. This places Viavi Solutions in the lower half of its industry. The industry median 5-Year ROIIC % is 3.34. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for a Hardware company?
The median 5-Year ROIIC % among Hardware companies is 3.34, based on 2,275 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Viavi Solutions and its competitors. For the Hardware industry, the median 5-Year ROIIC % is 3.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Viavi Solutions's current 5-Year ROIIC % is -0.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Viavi Solutions stock overvalued right now?
Based on GuruFocus' analysis, Viavi Solutions (VIAV) is currently considered Significantly Overvalued. The stock's GF Value™ is $13.25, compared to a current price of $40.12 — trading 202.8% above its estimated fair value. The current 5-Year ROIIC % is -0.13. Viavi Solutions' overall GF Score™ is 57/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Viavi Solutions (VIAV), the current 5-Year ROIIC % is -0.13 as of Jun. 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 Viavi Solutions (VIAV) Overvalued in 2026?
Based on GuruFocus' analysis, Viavi Solutions stock appears to be overvalued.
The current stock price of $40.12 is trading 202.8% above its estimated GF Value™ of $13.25.
GuruFocus considers Viavi Solutions to be Significantly Overvalued.
Key valuation signals for VIAV:
5-Year ROIIC %: -0.13
GF Value™: $13.25 vs. price of $40.12 (202.8% above fair value)
No single metric tells the full story. See the VIAV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Viavi Solutions Inc. is an international provider of network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, civil government, military and avionics customers. The company also offers high-performance thin-film optical coatings, providing light management solutions to anti-counterfeiting, 3D sensing, electronics, automotive, defense, and instrumentation markets. Its operating segments include Network Enablement, Service Enablement, and Optical Security and Performance Products. Geographically, it derives a majority of its revenue from the United States. Additionally, it manufactures and sells optical filters for 3D sensing products that allow facial recognition security authentication for mobile devices.
57GF Score
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