NOPLAT is comparable to NOPAT but is based on free cash flows (referring to the discounted cash flow model). NOPAT, in contrast, is derived from the balance sheet. Invested capital consists of the working capital and the fixed assets—usually at book value but occasionally at market value when it is considerably higher than the book value. A central ratio in this approach is the return on invested capital (ROIC)—a key driver for free cash flow and thus corporate value. ROIC can be calculated by: ROIC = NOPLAT/invested capital.