ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Manchester United's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 1.76%.
As of today (2026-06-25), Manchester United's WACC % is 9.73%. Manchester United's ROC % is 0.43% (calculated using TTM income statement data).
Manchester United earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Manchester United (NYSE:MANU) 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, Manchester United's WACC % is 9.73%. Manchester United's ROC % is 0.43% (calculated using TTM income statement data).
Manchester United 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.
Manchester United ROC % Related Terms
Manchester United ROC % Historical Data
* Premium members only.
The historical data trend for Manchester United'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.
Manchester United (MANU) has a ROC % of 1.76% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Manchester United and its competitors.
Is Manchester United's ROC % too high?
Manchester United's current ROC % is 1.76%. The Media - Diversified industry median ROC % is 1.41. Manchester United's value of 1.76% is 25.3% above this industry median. Overall, Manchester United has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Manchester United's ROC % compare to MSGE and CNK?
Manchester United's ROC % of 1.76% can be compared against companies in the Media - Diversified industry. The industry median ROC % is 1.41. Manchester United's value of 1.76% is 25.3% 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 Media - Diversified company?
The median ROC % among Media - Diversified companies is 1.41, based on 1,016 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. Manchester United's current ROC % of 1.76% is 25.3% 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 Manchester United and its competitors. For the Media - Diversified industry, the median ROC % is 1.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Manchester United's current ROC % is 1.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Manchester United stock overvalued right now?
Based on GuruFocus' analysis, Manchester United (MANU) is currently considered Modestly Overvalued. The stock's GF Value™ is $17.45, compared to a current price of $21.99 — trading 26% above its estimated fair value. The current ROC % is 1.76% and 25.3% above the Media - Diversified industry median of 1.41. Manchester United's overall GF Score™ is 73/100 with 10 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 Manchester United (MANU), the current ROC % is 1.76% 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 Manchester United (MANU) Overvalued in 2026?
Based on GuruFocus' analysis, Manchester United stock appears to be overvalued.
The current stock price of $21.99 is trading 26% above its estimated GF Value™ of $17.45.
GuruFocus considers Manchester United to be Modestly Overvalued.
Key valuation signals for MANU:
ROC %: 1.76%
GF Value™: $17.45 vs. price of $21.99 (26% above fair value)
Industry Position: 25.3% above the Media - Diversified median
No single metric tells the full story. See the MANU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Manchester United PLC operates as a professional football club with related activities, generating revenue prominently through commercial, broadcasting, and matchday segments. The commercial segment monetizes the various brands via sponsorships, retail, merchandising, apparel, and product licensing. Broadcasting revenue comes from television rights linked to football leagues and competitions, alongside content delivered through its dedicated TV channel all over the globe. Matchday income includes ticket sales, hospitality, merchandise, and services at its stadium. Manchester United is based in England. The company's operations and fan base extends to many countries, supporting a diversified revenue model based on brand engagement and football-related content.
73GF Score
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