ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. TPG Telecom's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 0.00%.
As of today (2026-06-26), TPG Telecom's WACC % is 3.41%. TPG Telecom's ROC % is 2.34% (calculated using TTM income statement data).
TPG Telecom earns returns that do not match up to its cost of capital. It will destroy value as it grows.
TPG Telecom (MEX:TPGN) 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, TPG Telecom's WACC % is 3.41%. TPG Telecom's ROC % is 2.34% (calculated using TTM income statement data).
TPG Telecom 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.
TPG Telecom ROC % Related Terms
TPG Telecom ROC % Historical Data
* Premium members only.
The historical data trend for TPG Telecom'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 two times the semi-annual (Dec. 2025) 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.
TPG Telecom (MEX:TPGN) has a ROC % of 0.00% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on TPG Telecom and its competitors.
Is TPG Telecom's ROC % too high?
TPG Telecom's current ROC % is 0.00%. Overall, TPG Telecom has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does TPG Telecom's ROC % compare to TMUS and VZ?
TPG Telecom's ROC % of 0.00% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.54. 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. 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 TPG Telecom 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. TPG Telecom's current ROC % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TPG Telecom stock overvalued right now?
TPG Telecom (MEX:TPGN) has a current ROC % of 0.00%. The current ROC % is 0.00%. TPG Telecom's overall GF Score™ is 63/100 with 6 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 TPG Telecom (MEX:TPGN), the current ROC % is 0.00% as of Dec. 2025. 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.
TPG Telecom is Australia's third-largest telecom services company. It offers mobile, fixed-line broadband and telephony solutions. The group's mobile business caters to all market segments spanning consumer, small business, corporate, wholesale, and government. TPG Telecom has grown substantially since listing on the ASX in 2008, via organic growth and acquisitions, and culminated with the July 2020 Vodafone Hutchison Australia merger, the third-ranked mobile network operator in Australia. It owns an extensive stable of infrastructure assets, including a nationwide mobile network that is upgrading to 5G wireless. In July 2025, TPG sold its fiber assets for AUD 5.3 billion to Vocus.
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