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VNET GroupVNET +1.85%58 Capex-to-Operating-Income is 7.27 as of Mar. 2026, which is 28% below its 10-year median of 10.08. GuruFocus rates VNET with a GF Score™ of 58/100 and a GF Value™ of $4.37 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,302 Software companies, VNET Group ranks worse than 97.47% on this metric.
Capex-to-Operating-Income measures a company's investments in physical assets such as property, industrial buildings or equipment to its operating income.
VNET Group (NAS:VNET) Capex-to-Operating-Income Explanation
Capex-to-Operating-Income assesses how much emphasis a company is placing upon investing in capital-intensive projects. The ratio is generally a good gauge to quantify how much focus on growth a company has. Typically, smaller companies that are still growing and expanding will have a higher Capex to Operating Income Ratio, since such businesses are likely investing more in physical assets. Lower ratios could indicate that a company has reached maturity and it is no longer pursuing aggressive growth.
VNET Group Capex-to-Operating-Income Related Terms
VNET Group Capex-to-Operating-Income Historical Data
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The historical data trend for VNET Group's Capex-to-Operating-Income can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
VNET vs INOD, SHAZ, DXC: Capex-to-Operating-Income Comparison
For the Information Technology Services subindustry, VNET Group's Capex-to-Operating-Income, along with its competitors' market caps and Capex-to-Operating-Income data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
VNET Group Capex-to-Operating-Income vs Software Industry
For the Software industry and Technology sector, VNET Group's Capex-to-Operating-Income distribution charts can be found below:
* The bar in red indicates where VNET Group's Capex-to-Operating-Income falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Capex-to-Operating-Income of 7.27 mean?
VNET Group (VNET) has a Capex-to-Operating-Income of 7.27 as of Mar. 2026. Capex to Operating Income ratio measures a company's investments in physical assets to its operating income. View historical data on VNET Group and its competitors. This is 28% below median its historical median of 10.08. Over the past decade, VNET Group's Capex-to-Operating-Income has ranged from 2.03 to 25.59. According to the industry distribution chart, VNET Group ranks #1269 out of 1302 companies in the Software industry, placing it in the top 97.5%.
Is VNET Group's Capex-to-Operating-Income too high?
VNET Group's current Capex-to-Operating-Income of 7.27 is 28% below median its 10-year median of 10.08. Over the past 10 years, this metric has ranged from a low of 2.03 to a high of 25.59. The Software industry median Capex-to-Operating-Income is 0.27. VNET Group's value of 7.27 is 2592.6% above this industry median. Based on the distribution chart, VNET Group ranks #1269 out of 1302 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, VNET Group has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does VNET Group's Capex-to-Operating-Income compare to INOD and SHAZ?
According to the Software industry distribution chart, VNET Group ranks #1269 out of 1302 companies for Capex-to-Operating-Income. This places VNET Group in the lower half of its industry. The industry median Capex-to-Operating-Income is 0.27. VNET Group's value of 7.27 is 2592.6% above this benchmark. Historically, VNET Group's own Capex-to-Operating-Income has ranged from 2.03 to 25.59 over the past decade. While the company's 10-year median is 10.08 vs. the industry median of 0.27, VNET Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Capex-to-Operating-Income for a Software company?
The median Capex-to-Operating-Income among Software companies is 0.27, based on 1,302 companies in the industry. Companies in the top quartile (top 25%) have a Capex-to-Operating-Income significantly above this median, while those in the bottom quartile fall well below. However, Capex-to-Operating-Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. VNET Group's current Capex-to-Operating-Income of 7.27 is 2592.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Capex-to-Operating-Income mean?
A high Capex-to-Operating-Income can signal that a stock is expensive relative to its fundamentals. Capex to Operating Income ratio measures a company's investments in physical assets to its operating income. View historical data on VNET Group and its competitors. For the Software industry, the median Capex-to-Operating-Income is 0.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. VNET Group's current Capex-to-Operating-Income is 7.27, which is 28% below median its own 10-year median of 10.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VNET Group stock overvalued right now?
Based on GuruFocus' analysis, VNET Group (VNET) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.37, compared to a current price of $7.14 — trading 63.4% above its estimated fair value. The current Capex-to-Operating-Income is 7.27, which is 28% below median its 10-year median of 10.08 and 2592.6% above the Software industry median of 0.27. VNET Group's overall GF Score™ is 58/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Capex-to-Operating-Income calculated?
Capex-to-Operating-Income is calculated from a company's financial statements. For VNET Group (VNET), the current Capex-to-Operating-Income is 7.27 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is VNET Group (VNET) Overvalued in 2026?
Based on GuruFocus' analysis, VNET Group stock appears to be overvalued.
The current stock price of $7.14 is trading 63.4% above its estimated GF Value™ of $4.37.
GuruFocus considers VNET Group to be Significantly Overvalued.
Key valuation signals for VNET:
Capex-to-Operating-Income: 7.27 (28% below median its 10-year median of 10.08)
GF Value™: $4.37 vs. price of $7.14 (63.4% above fair value)
Industry Position: 2592.6% above the Software median (#1269 of 1302)
No single metric tells the full story. See the VNET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
VNET started as AsiaCloud in 1999 and moved into the data center business, opening its first self-developed data center in 2010. The firm listed (as 21Vianet) on the Nasdaq in April 2011, subsequently changing its name to VNET Group in 2021. It originally focused on providing data center services such as colocation and cloud services to retail clients in China, but added hyperscale customers in 2019 and now counts large Chinese hyperscalers such as Alibaba Cloud, Tencent Cloud, and Huawei Cloud as customers. At the end of December 2025, it had 49,863 retail cabinets, with the majority in Beijing, Shanghai, and the Greater Bay area. It also had 889 MW of wholesale capacity in service, with a further 452 MW under construction and a further 840 MW held for future development.
58GF Score
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Capex-to-Operating-Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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