ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Nortel Inversora's annualized return on capital (ROC %) for the quarter that ended in Sep. 2017 was 20.17%.
As of today (2026-06-30), Nortel Inversora's WACC % is 0.00%. Nortel Inversora's ROC % is 29.83% (calculated using TTM income statement data).
Nortel Inversora generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Nortel Inversora (BUE:NORT6) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Nortel Inversora's WACC % is 0.00%. Nortel Inversora's ROC % is 29.83% (calculated using TTM income statement data).
Nortel Inversora generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Nortel Inversora ROC % Related Terms
Nortel Inversora ROC % Historical Data
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The historical data trend for Nortel Inversora's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Sep. 2017) data.
The tax rate is limited to between 0% and 100%.
* 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.
Nortel Inversora (BUE:NORT6) has a ROC % of 20.17% as of Sep. 2017. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nortel Inversora and its competitors.
Is Nortel Inversora's ROC % too high?
Nortel Inversora's current ROC % is 20.17%. The Telecommunication Services industry median ROC % is 4.53. Nortel Inversora's value of 20.17% is 345.3% above this industry median.
How does Nortel Inversora's ROC % compare to GLIBA and TDCAF?
Nortel Inversora's ROC % of 20.17% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.53. Nortel Inversora's value of 20.17% is 345.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Telecommunication Services company?
The median ROC % among Telecommunication Services companies is 4.53, based on 363 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nortel Inversora's current ROC % of 20.17% is 345.3% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nortel Inversora and its competitors. For the Telecommunication Services industry, the median ROC % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nortel Inversora's current ROC % is 20.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nortel Inversora stock overvalued right now?
Nortel Inversora (BUE:NORT6) has a current ROC % of 20.17%. The current ROC % is 20.17% and 345.3% above the Telecommunication Services industry median of 4.53. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Nortel Inversora (BUE:NORT6), the current ROC % is 20.17% as of Sep. 2017. 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.
Nortel Inversora SA is a holding company. The company provides fixed-line public telecommunications services and basic telephone services. Nortel operates through the following segments: Fixed Services; Personal Mobile Services; and Nucleo Mobile Services. The Fixed Services division provides a local area, national long-distance and international communications, supplementary services, data transmission, internet services, IT solution outsourcing and sales of equipment. Personal Mobile Services and Nucleo Mobile Services division offerings include voice communications, high-speed mobile internet content and applications download, multimedia messaging services, among others; and sale of mobile communication devices.
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