New ratios preview (ROIC, WACC, and more)

yuvaltaylor
Sun, 15 Feb 2026 03:42:54 +0000

FundsFromOp is an REIT-only measure that was incorrectly linked to a FactSet line item that usually equals OperCashFl. Please use OperCashFl instead to avoid confusion.

NOPAT is not EBIT. AT means after taxes. You have to subtract taxes somehow otherwise it's not NOPAT.

The return on capital formula doesn't seem to conform with any definition I've seen. I suggest OpInc / (Max(0, WorkCap) + AstTot - AstCur - AstIntan). That's what Greenblatt used.

ROIC normally does not use Net Income, but NOPAT instead.

WACC is usually calculated using market cap, not common equity. You want the market value of equity there (both in the numerator and denominator). And the risk free rate is usually the ten-year treasury rather than the three-month treasury.

The cost of debt should use 5-year averages, not the annual rate. The annual rate jumps up and down way too much.