A
Glossary
ROIC − WACC Spread
Essential — core valuation theory
What it measures
What it earns on capital minus what capital costs. Positive = building wealth, negative = burning it. Possibly the key number.
Formula
ROIC − WACCBenchmark
> 0 creates value · > 5pp strong
Related metrics
Source
McKinsey, Valuation (7th ed.) ch. 2