ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. PT Indosat Tbk's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.18%.
As of today (2026-06-27), PT Indosat Tbk's WACC % is 7.91%. PT Indosat Tbk's ROC % is 7.69% (calculated using TTM income statement data).
PT Indosat Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.
PT Indosat Tbk (ISX:ISAT) 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, PT Indosat Tbk's WACC % is 7.91%. PT Indosat Tbk's ROC % is 7.69% (calculated using TTM income statement data).
PT Indosat Tbk 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.
PT Indosat Tbk ROC % Related Terms
PT Indosat Tbk ROC % Historical Data
* Premium members only.
The historical data trend for PT Indosat Tbk'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.
PT Indosat Tbk (ISX:ISAT) has a ROC % of 8.18% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on PT Indosat Tbk and its competitors.
Is PT Indosat Tbk's ROC % too high?
PT Indosat Tbk's current ROC % is 8.18%. The Telecommunication Services industry median ROC % is 4.54. PT Indosat Tbk's value of 8.18% is 80.4% above this industry median. Overall, PT Indosat Tbk has a GF Score™ of 89/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does PT Indosat Tbk's ROC % compare to TMUS and VZ?
PT Indosat Tbk's ROC % of 8.18% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.54. PT Indosat Tbk's value of 8.18% is 80.4% 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. PT Indosat Tbk's current ROC % of 8.18% is 80.4% 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 PT Indosat Tbk 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. PT Indosat Tbk's current ROC % is 8.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Indosat Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Indosat Tbk (ISX:ISAT) is currently considered Possible Value Trap. The stock's GF Value™ is Rp2,552.32, compared to a current price of Rp1,750.00 — trading 31.4% below its estimated fair value. The current ROC % is 8.18% and 80.4% above the Telecommunication Services industry median of 4.54. PT Indosat Tbk's overall GF Score™ is 89/100 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 PT Indosat Tbk (ISX:ISAT), the current ROC % is 8.18% 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 PT Indosat Tbk (ISX:ISAT) Overvalued in 2026?
Based on GuruFocus' analysis, PT Indosat Tbk stock appears to be undervalued.
The current stock price of Rp1,750.00 is trading 31.4% below its estimated GF Value™ of Rp2,552.32.
GuruFocus considers PT Indosat Tbk to be Possible Value Trap.
Key valuation signals for ISX:ISAT:
ROC %: 8.18%
GF Value™: Rp2,552.32 vs. price of Rp1,750.00 (31.4% below fair value)
Industry Position: 80.4% above the Telecommunication Services median
No single metric tells the full story. See the ISX:ISAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Indosat Tbk is the provider of international long-distance and wireless services in Indonesia. The company operates under three reportable segments: Cellular, Midi and Fixed Telecommunication segment. Cellular, providing network coverage in all cities across Indonesia; fixed telecommunications, which provides services such as international calls and fixed lines; and multimedia interactive, data and internet, which offers products such as fixed connectivity, IT service and fixed Internet. The Cellular segment provides majority of the company's revenue.
89GF Score
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