Vianet Group (LSE:VNET) Degree of Operating Leverage : -14.51 (As of Mar. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

LSE:VNET Vianet Group PLC LSE:VNET
40 GF Score
Price £0.66
GF Value £0.89
Valuation Modestly Undervalued
! 5 Warning Signs
View Full Analysis

What is Vianet Group Degree of Operating Leverage?

Vianet Group LSE:VNET 40 Degree of Operating Leverage is -14.51 as of Mar. 2026. GuruFocus rates LSE:VNET with a GF Score™ of 40/100 and a GF Value™ of £0.89 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,048 Business Services companies, Vianet Group ranks better than 91.03% on this metric.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Vianet Group's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was -14.51. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Vianet Group's Degree of Operating Leverage or its related term are showing as below:

LSE:VNET's Degree of Operating Leverage is ranked better than
91.03% of 1048 companies
in the Business Services industry
Industry Median: 1.12 vs LSE:VNET: -14.51

Vianet Group  (LSE:VNET) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Vianet Group Degree of Operating Leverage Related Terms


Vianet Group Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Vianet Group's Degree of Operating Leverage 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.

Vianet Group Degree of Operating Leverage Chart

Vianet Group Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.70 -295.30 10.76 28.05 -14.51

Vianet Group Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.76 16.66 28.05 -7.39 -14.51

LSE:VNET vs CTAS, CPRT, GPN: Degree of Operating Leverage Comparison

For the Specialty Business Services subindustry, Vianet Group's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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.


Vianet Group Degree of Operating Leverage vs Business Services Industry

For the Business Services industry and Industrials sector, Vianet Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Vianet Group's Degree of Operating Leverage falls into.


LSE:VNET
40GF Score
Vianet Group PLC LSE:VNET
Degree of Operating Leverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Vianet Group Degree of Operating Leverage Calculation

Vianet Group's Degree of Operating Leverage for the quarter that ended in Mar. 2026 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1.064 (Mar. 2026) / 1.333 (Mar. 2025) - 1 )/( 15.233 (Mar. 2026) / 15.024 (Mar. 2025) - 1 )
=-0.2018/0.0139
=-14.51***

* 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.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

What does a Degree of Operating Leverage of -14.51 mean?
Vianet Group (LSE:VNET) has a Degree of Operating Leverage of -14.51 as of Mar. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Vianet Group and its competitors. According to the industry distribution chart, Vianet Group ranks #94 out of 1048 companies in the Business Services industry, placing it in the top 9%.
Is Vianet Group's Degree of Operating Leverage too high?
Vianet Group's current Degree of Operating Leverage is -14.51. Based on the distribution chart, Vianet Group ranks #94 out of 1048 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Vianet Group has a GF Score™ of 40/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vianet Group's Degree of Operating Leverage compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Vianet Group ranks #94 out of 1048 companies for Degree of Operating Leverage. This places Vianet Group in the top 9% of its industry — outperforming the majority of peers. The industry median Degree of Operating Leverage is 1.12. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Business Services company?
The median Degree of Operating Leverage among Business Services companies is 1.12, based on 1,048 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Vianet Group and its competitors. For the Business Services industry, the median Degree of Operating Leverage is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vianet Group's current Degree of Operating Leverage is -14.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vianet Group stock overvalued right now?
Based on GuruFocus' analysis, Vianet Group (LSE:VNET) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.89, compared to a current price of £0.66 — trading 25.8% below its estimated fair value. The current Degree of Operating Leverage is -14.51. Vianet Group's overall GF Score™ is 40/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Vianet Group (LSE:VNET), the current Degree of Operating Leverage is -14.51 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 Vianet Group (LSE:VNET) Overvalued in 2026?

Based on GuruFocus' analysis, Vianet Group stock appears to be undervalued. The current stock price of £0.66 is trading 25.8% below its estimated GF Value™ of £0.89. GuruFocus considers Vianet Group to be Modestly Undervalued.

Key valuation signals for LSE:VNET:

  • Degree of Operating Leverage: -14.51
  • GF Value™: £0.89 vs. price of £0.66 (25.8% below fair value)
  • GF Score™: 40/100 with 5 warning signs

No single metric tells the full story. See the LSE:VNET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Vianet Group Business Description

Other Exchanges AS2:Germany
Address One Surtees Way, Surtees Business Park, Stockton on Tees, GBR, TS18 3HR
Vianet Group PLC is a provider of actionable management information and business insight created by combining data from the smart Internet of Things solutions and external information sources. Smart Zones include Data insight and actionable data services as well as design, product development, sale, and rental of fluid monitoring equipment. The business of the group is divided into two divisions: Smart Machines, Smart Zones and Corporate/Technology. The company generates maximum revenue from the Smart Zones segment. Geographically, the company derives maximum of the revenue from the United Kingdom and has a presence in the Rest of Europe and the United States/Canada.
40GF Score

Get the complete analysis for LSE:VNET

Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£0.66
Price
£0.89
GF Value