According to Compounding Quality (@QCompounding), traders should focus on companies where Return on Invested Capital (ROIC) exceeds Weighted Average Cost of Capital (WACC) for true value creation. The analysis highlights that if a company earns 5% ROIC with a 10% WACC, it destroys value, negatively affecting share price and long-term investor returns. In contrast, a company earning 20% ROIC with a 10% WACC compounds wealth, supporting sustainable stock growth and attracting institutional investors. Crypto traders monitoring equity markets can use these metrics to gauge capital inflows and risk sentiment shifts that may impact digital asset liquidity. (Source: @QCompounding, May 20, 2025)