ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Telia Lietuva AB's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 16.87%.
As of today (2026-07-02), Telia Lietuva AB's WACC % is 8.49%. Telia Lietuva AB's ROC % is 17.04% (calculated using TTM income statement data).
Telia Lietuva AB 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.
Telia Lietuva AB (FRA:ZWS) 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, Telia Lietuva AB's WACC % is 8.49%. Telia Lietuva AB's ROC % is 17.04% (calculated using TTM income statement data).
Telia Lietuva AB 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.
Telia Lietuva AB ROC % Related Terms
Telia Lietuva AB ROC % Historical Data
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The historical data trend for Telia Lietuva AB'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.
Telia Lietuva AB (FRA:ZWS) has a ROC % of 16.87% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Telia Lietuva AB and its competitors.
Is Telia Lietuva AB's ROC % too high?
Telia Lietuva AB's current ROC % is 16.87%. The Telecommunication Services industry median ROC % is 4.54. Telia Lietuva AB's value of 16.87% is 272% above this industry median. Overall, Telia Lietuva AB has a GF Score™ of 94/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telia Lietuva AB's ROC % compare to TMUS and VZ?
Telia Lietuva AB's ROC % of 16.87% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.54. Telia Lietuva AB's value of 16.87% is 272% 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 362 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. Telia Lietuva AB's current ROC % of 16.87% is 272% 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 Telia Lietuva AB 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. Telia Lietuva AB's current ROC % is 16.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telia Lietuva AB stock overvalued right now?
Based on GuruFocus' analysis, Telia Lietuva AB (FRA:ZWS) is currently considered Modestly Overvalued. The stock's GF Value™ is €1.78, compared to a current price of €2.13 — trading 19.7% above its estimated fair value. The current ROC % is 16.87% and 272% above the Telecommunication Services industry median of 4.54. Telia Lietuva AB's overall GF Score™ is 94/100 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 Telia Lietuva AB (FRA:ZWS), the current ROC % is 16.87% 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 Telia Lietuva AB (FRA:ZWS) Overvalued in 2026?
Based on GuruFocus' analysis, Telia Lietuva AB stock appears to be overvalued.
The current stock price of €2.13 is trading 19.7% above its estimated GF Value™ of €1.78.
GuruFocus considers Telia Lietuva AB to be Modestly Overvalued.
Key valuation signals for FRA:ZWS:
ROC %: 16.87%
GF Value™: €1.78 vs. price of €2.13 (19.7% above fair value)
Industry Position: 272% above the Telecommunication Services median
No single metric tells the full story. See the FRA:ZWS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telia Lietuva AB provides telecommunications, TV, and IT services to business and residential customers in the Republic of Lithuania. The company offers mobile connections, internet services, e-sims, television and OTT subscriptions, network and computer equipment, enterprise internet services, etc. Its operating segments are: Business customer segment (B2B), Private customer segment (B2C), and Other. Maximum revenue is generated from the B2C segment, which is responsible for service and customer care for private customers. The B2B segment is responsible for services sales and customer care for business customers and operators, including retail and wholesale telecommunication and IT services; and the Other segment includes the technology division and support units' financial performance.
94GF Score
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