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We derive GAAP Net Income, Core Earnings, NOPAT, Invested Capital, Economic Earnings, and Free Cash Flow by summing the individual values for each company in the sector/industry.

We calculate ROIC and WACC as market-weighted values relative to each respective sector/industry. Details below:

1. Company weight equals the company’s market cap divided by the market cap of the sector/industry.
2. We multiply each company’s ROIC or WACC by its weight.
3. The sector/industry ROIC and WACC equals the sum of the weighted ROIC or WACC for all the companies in the sector/industry.