ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Telefonica Brasil's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.10%.
As of today (2026-06-24), Telefonica Brasil's WACC % is 10.33%. Telefonica Brasil's ROC % is 7.74% (calculated using TTM income statement data).
Telefonica Brasil earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Telefonica Brasil (FRA:TSPA) 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, Telefonica Brasil's WACC % is 10.33%. Telefonica Brasil's ROC % is 7.74% (calculated using TTM income statement data).
Telefonica Brasil 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.
Telefonica Brasil ROC % Related Terms
Telefonica Brasil ROC % Historical Data
* Premium members only.
The historical data trend for Telefonica Brasil'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.
Telefonica Brasil (FRA:TSPA) has a ROC % of 7.10% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Telefonica Brasil and its competitors.
Is Telefonica Brasil's ROC % too high?
Telefonica Brasil's current ROC % is 7.10%. The Telecommunication Services industry median ROC % is 4.54. Telefonica Brasil's value of 7.10% is 56.4% above this industry median. Overall, Telefonica Brasil has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telefonica Brasil's ROC % compare to TMUS and VZ?
Telefonica Brasil's ROC % of 7.10% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.54. Telefonica Brasil's value of 7.10% is 56.4% 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. Telefonica Brasil's current ROC % of 7.10% is 56.4% 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 Telefonica Brasil 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. Telefonica Brasil's current ROC % is 7.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telefonica Brasil stock overvalued right now?
Based on GuruFocus' analysis, Telefonica Brasil (FRA:TSPA) is currently considered Fairly Valued. The stock's GF Value™ is €10.27, compared to a current price of €11.20 — trading 9.1% above its estimated fair value. The current ROC % is 7.10% and 56.4% above the Telecommunication Services industry median of 4.54. Telefonica Brasil's overall GF Score™ is 80/100 with 2 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 Telefonica Brasil (FRA:TSPA), the current ROC % is 7.10% 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 Telefonica Brasil (FRA:TSPA) Overvalued in 2026?
Based on GuruFocus' analysis, Telefonica Brasil stock appears to be overvalued.
The current stock price of €11.20 is trading 9.1% above its estimated GF Value™ of €10.27.
GuruFocus considers Telefonica Brasil to be Fairly Valued.
Key valuation signals for FRA:TSPA:
ROC %: 7.10%
GF Value™: €10.27 vs. price of €11.20 (9.1% above fair value)
Industry Position: 56.4% above the Telecommunication Services median
No single metric tells the full story. See the FRA:TSPA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telefonica Brasil, known as Vivo, is the largest wireless carrier in Brazil with 103 million customers, which is equal to about 38% market share. The firm is strongest in the postpaid business, where it has 72 million customers, or about 40% share of this market. Wireless services and equipment contribute about 70% of total revenue. Vivo is the incumbent fixed-line telephone operator in Sao Paulo state and also owns an extensive fiber network across the country. The firm provides internet access to 8 million households on this network. The firm also sells pay-TV and phone services to its fixed-line customers. Finally, corporate data and IT services, including cloud computing support, contribute about 10% of total revenue.
80GF Score
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