A
Glossary
ROIC − WACC Spread
Essential — core valuation theory
What it measures
A positive spread means the company earns more than its cost of capital — it is creating value, not destroying it.
Formula
ROIC - WACCBenchmark
> 0 creates value · > 5pp strong
Related metrics
Source
McKinsey, Valuation (7th ed.) ch. 2