ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Crown Castle's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 5.51%.
As of today (2026-06-25), Crown Castle's WACC % is 6.57%. Crown Castle's ROC % is 5.91% (calculated using TTM income statement data).
Crown Castle earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Crown Castle (FRA:8CW) 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, Crown Castle's WACC % is 6.57%. Crown Castle's ROC % is 5.91% (calculated using TTM income statement data).
Crown Castle earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Crown Castle ROC % Related Terms
Crown Castle ROC % Historical Data
* Premium members only.
The historical data trend for Crown Castle'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 (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.
Crown Castle (FRA:8CW) has a ROC % of 5.51% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Crown Castle and its competitors.
Is Crown Castle's ROC % too high?
Crown Castle's current ROC % is 5.51%. The REITs industry median ROC % is 3.74. Crown Castle's value of 5.51% is 47.3% above this industry median. Overall, Crown Castle has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Crown Castle's ROC % compare to IRM and SBAC?
Crown Castle's ROC % of 5.51% can be compared against companies in the REITs industry. The industry median ROC % is 3.74. Crown Castle's value of 5.51% is 47.3% 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 REITs company?
The median ROC % among REITs companies is 3.74, based on 750 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. Crown Castle's current ROC % of 5.51% is 47.3% 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 Crown Castle and its competitors. For the REITs industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Crown Castle's current ROC % is 5.51%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Crown Castle stock overvalued right now?
Based on GuruFocus' analysis, Crown Castle (FRA:8CW) is currently considered Fairly Valued. The stock's GF Value™ is €80.26, compared to a current price of €73.50 — trading 8.4% below its estimated fair value. The current ROC % is 5.51% and 47.3% above the REITs industry median of 3.74. Crown Castle's overall GF Score™ is 61/100 with 7 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 Crown Castle (FRA:8CW), the current ROC % is 5.51% 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 Crown Castle (FRA:8CW) Overvalued in 2026?
Based on GuruFocus' analysis, Crown Castle stock appears to be undervalued.
The current stock price of €73.50 is trading 8.4% below its estimated GF Value™ of €80.26.
GuruFocus considers Crown Castle to be Fairly Valued.
Key valuation signals for FRA:8CW:
ROC %: 5.51%
GF Value™: €80.26 vs. price of €73.50 (8.4% below fair value)
No single metric tells the full story. See the FRA:8CW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Crown Castle owns or manages roughly 40,000 wireless towers in the United States. It leases space on its towers to wireless service providers, which install equipment to support their wireless networks. The company has a very concentrated customer base, with about 90% of its revenue from the Big Three US mobile carriers: Verizon, T-Mobile, and AT&T. Crown Castle has plans to divest its fiber business, which is expected to be finalized in the first half of 2026. After that, it will be a stand-alone tower operator. Crown Castle operates as a real estate investment trust.
61GF Score
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