ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Charter Communications's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.27%.
As of today (2026-06-25), Charter Communications's WACC % is 4.04%. Charter Communications's ROC % is 6.66% (calculated using TTM income statement data).
Charter Communications 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.
Charter Communications (NAS:CHTR) 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, Charter Communications's WACC % is 4.04%. Charter Communications's ROC % is 6.66% (calculated using TTM income statement data).
Charter Communications 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.
* 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 (Mar. 2026) 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.
Charter Communications (CHTR) has a ROC % of 6.27% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Charter Communications and its competitors.
Is Charter Communications' ROC % too high?
Charter Communications' current ROC % is 6.27%. The Telecommunication Services industry median ROC % is 4.54. Charter Communications' value of 6.27% is 38.1% above this industry median. Overall, Charter Communications has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Charter Communications' ROC % compare to TIGO and LUMN?
Charter Communications' ROC % of 6.27% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.54. Charter Communications' value of 6.27% is 38.1% 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 4.54, based on 366 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. Charter Communications's current ROC % of 6.27% is 38.1% 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 Charter Communications and its competitors. For the Telecommunication Services industry, the median ROC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Charter Communications's current ROC % is 6.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Charter Communications stock overvalued right now?
Based on GuruFocus' analysis, Charter Communications (CHTR) is currently considered Possible Value Trap. The stock's GF Value™ is $379.50, compared to a current price of $131.42 — trading 65.4% below its estimated fair value. The current ROC % is 6.27% and 38.1% above the Telecommunication Services industry median of 4.54. Charter Communications' overall GF Score™ is 69/100 with 3 warning signs to review. 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 Charter Communications (CHTR), the current ROC % is 6.27% 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 Charter Communications (CHTR) Overvalued in 2026?
Based on GuruFocus' analysis, Charter Communications stock appears to be undervalued.
The current stock price of $131.42 is trading 65.4% below its estimated GF Value™ of $379.50.
GuruFocus considers Charter Communications to be Possible Value Trap.
Key valuation signals for CHTR:
ROC %: 6.27%
GF Value™: $379.50 vs. price of $131.42 (65.4% below fair value)
Industry Position: 38.1% above the Telecommunication Services median
No single metric tells the full story. See the CHTR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Charter is the product of the 2016 merger of three cable companies, each with a decades-long history in the business: Legacy Charter, Time Warner Cable, and Bright House Networks. The firm now holds networks capable of providing television, internet access, and phone services to roughly 59 million US homes and businesses, around 35% of the country. Across this footprint, Charter serves 29 million residential and 2 million commercial customer accounts under the Spectrum brand, making it the second-largest US cable company behind Comcast. The firm also owns, in whole or in part, sports and news networks, including Spectrum SportsNet (Los Angeles Lakers), SportsNet LA (Los Angeles Dodgers), SportsNet New York (New York Mets), and Spectrum News NY1. Charter plans to acquire cable peer Cox.
69GF Score
Get the complete analysis for CHTR
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CHTR has been successfully added to your 
