ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. MTN Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 11.27%.
As of today (2026-06-25), MTN Group's WACC % is 14.90%. MTN Group's ROC % is 10.32% (calculated using TTM income statement data).
MTN Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
MTN Group (OTCPK:MTNOF) 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, MTN Group's WACC % is 14.90%. MTN Group's ROC % is 10.32% (calculated using TTM income statement data).
MTN Group 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.
MTN Group ROC % Related Terms
MTN Group ROC % Historical Data
* Premium members only.
The historical data trend for MTN Group'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.
MTN Group (MTNOF) has a ROC % of 11.27% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on MTN Group and its competitors.
Is MTN Group's ROC % too high?
MTN Group's current ROC % is 11.27%. The Telecommunication Services industry median ROC % is 4.54. MTN Group's value of 11.27% is 148.2% above this industry median. Overall, MTN Group has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MTN Group's ROC % compare to TMUS and VZ?
MTN Group's ROC % of 11.27% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.54. MTN Group's value of 11.27% is 148.2% 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 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. MTN Group's current ROC % of 11.27% is 148.2% 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 MTN Group 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. MTN Group's current ROC % is 11.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MTN Group stock overvalued right now?
Based on GuruFocus' analysis, MTN Group (MTNOF) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.78, compared to a current price of $13.40 — trading 52.6% above its estimated fair value. The current ROC % is 11.27% and 148.2% above the Telecommunication Services industry median of 4.54. MTN Group's overall GF Score™ is 71/100 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 MTN Group (MTNOF), the current ROC % is 11.27% 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.
Is MTN Group (MTNOF) Overvalued in 2026?
Based on GuruFocus' analysis, MTN Group stock appears to be overvalued.
The current stock price of $13.40 is trading 52.6% above its estimated GF Value™ of $8.78.
GuruFocus considers MTN Group to be Significantly Overvalued.
Key valuation signals for MTNOF:
ROC %: 11.27%
GF Value™: $8.78 vs. price of $13.40 (52.6% above fair value)
Industry Position: 148.2% above the Telecommunication Services median
No single metric tells the full story. See the MTNOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MTN Group Ltd is a mobile telecommunications provider. The company also has a joint venture in Iran. From a product perspective, the majority of its revenue is from voice and data. Other contributors include SMS and sale of devices revenue. MTN also provides enterprise services to small/midsize enterprises and corporate clients. The company owns the mobile infrastructure and data centers. Its segments include Network services, Mobile devices, Interconnect and roaming, Digital and fintech and others. It derives maximum revenue from Network Services segment. Geographically, the company operates across South Africa, Nigeria, South and East Africa (SEA), GHASEA, Middle East and North Africa (MENA). The majority of the company's revenue is earned in and Nigeria.
71GF Score
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