ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. IHS Holding's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.48%.
As of today (2026-06-28), IHS Holding's WACC % is 5.67%. IHS Holding's ROC % is 13.04% (calculated using TTM income statement data).
IHS Holding 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.
IHS Holding (NYSE:IHS) 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, IHS Holding's WACC % is 5.67%. IHS Holding's ROC % is 13.04% (calculated using TTM income statement data).
IHS Holding 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.
IHS Holding ROC % Related Terms
IHS Holding ROC % Historical Data
* Premium members only.
The historical data trend for IHS Holding'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.
IHS Holding (IHS) has a ROC % of 8.48% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on IHS Holding and its competitors.
Is IHS Holding's ROC % too high?
IHS Holding's current ROC % is 8.48%. The Real Estate industry median ROC % is 2.19. IHS Holding's value of 8.48% is 287.2% above this industry median. Overall, IHS Holding has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IHS Holding's ROC % compare to CWK and NMRK?
IHS Holding's ROC % of 8.48% can be compared against companies in the Real Estate industry. The industry median ROC % is 2.19. IHS Holding's value of 8.48% is 287.2% 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 Real Estate company?
The median ROC % among Real Estate companies is 2.19, based on 1,760 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. IHS Holding's current ROC % of 8.48% is 287.2% 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 IHS Holding and its competitors. For the Real Estate industry, the median ROC % is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IHS Holding's current ROC % is 8.48%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IHS Holding stock overvalued right now?
Based on GuruFocus' analysis, IHS Holding (IHS) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.11, compared to a current price of $8.24 — trading 100.5% above its estimated fair value. The current ROC % is 8.48% and 287.2% above the Real Estate industry median of 2.19. IHS Holding's overall GF Score™ is 46/100 with 8 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 IHS Holding (IHS), the current ROC % is 8.48% 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 IHS Holding (IHS) Overvalued in 2026?
Based on GuruFocus' analysis, IHS Holding stock appears to be overvalued.
The current stock price of $8.24 is trading 100.5% above its estimated GF Value™ of $4.11.
GuruFocus considers IHS Holding to be Significantly Overvalued.
Key valuation signals for IHS:
ROC %: 8.48%
GF Value™: $4.11 vs. price of $8.24 (100.5% above fair value)
Industry Position: 287.2% above the Real Estate median
No single metric tells the full story. See the IHS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IHS Holding Ltd is an independent owner, operator, and developer of shared telecommunications infrastructure. The company provides telecommunications infrastructure to its customers, who are MNOs, who in turn provide wireless voice and data services to their end-users. Its geographical segments are Nigeria and Sub-Saharan Africa. The majority of its revenue is derived from Nigeria.
46GF Score
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