(Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty ImagesMy firm’s report, S&P 500 & Sectors: ROIC vs. WACC Through 2Q21, reveals the return on invested capital (ROIC) for the S&P 500 rebounded strongly through the first half of 2021. S&P 500 ROIC Continues to Rebound in 2Q21After the COVID-19 pandemic caused ROIC to fall throughout 2020, the S&P 500’s ROIC sharply recovered in 1H21 to pre-pandemic levels. Good Companies (High ROIC) & Good Stocks (Cheap Valuation)My firm leverages reliable fundamental data to identify the most profitable S&P 500 businesses whose stocks present attractive risk/reward. Per, Figure 3, Regeneron’s five-year average ROIC rose from 12% in 2013 to 48% over the trailing twelve months (TTM). [2] Five-year average ROIC = five-year average NOPAT / five-year average invested capital[3] Five-year average NOPAT margin = five-year average NOPAT / five-year average revenue[4] Five-year average invested capital turns = five-year average revenue / five-year average invested capital

Source: Forbes September 17, 2021 13:28 UTC