ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Magyar Telekom Telecommunications's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 19.03%.
As of today (2026-06-25), Magyar Telekom Telecommunications's WACC % is 11.28%. Magyar Telekom Telecommunications's ROC % is 18.19% (calculated using TTM income statement data).
Magyar Telekom Telecommunications 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.
Magyar Telekom Telecommunications (OTCPK:MYTKY) 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, Magyar Telekom Telecommunications's WACC % is 11.28%. Magyar Telekom Telecommunications's ROC % is 18.19% (calculated using TTM income statement data).
Magyar Telekom Telecommunications 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.
Magyar Telekom Telecommunications ROC % Related Terms
Magyar Telekom Telecommunications ROC % Historical Data
* 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.
Magyar Telekom Telecommunications (MYTKY) has a ROC % of 19.03% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Magyar Telekom Telecommunications and its competitors.
Is Magyar Telekom Telecommunications' ROC % too high?
Magyar Telekom Telecommunications' current ROC % is 19.03%. The Telecommunication Services industry median ROC % is 4.54. Magyar Telekom Telecommunications' value of 19.03% is 319.2% above this industry median. Overall, Magyar Telekom Telecommunications has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Magyar Telekom Telecommunications' ROC % compare to TMUS and VZ?
Magyar Telekom Telecommunications' ROC % of 19.03% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.54. Magyar Telekom Telecommunications' value of 19.03% is 319.2% 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. Magyar Telekom Telecommunications's current ROC % of 19.03% is 319.2% 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 Magyar Telekom Telecommunications 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. Magyar Telekom Telecommunications's current ROC % is 19.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magyar Telekom Telecommunications stock overvalued right now?
Based on GuruFocus' analysis, Magyar Telekom Telecommunications (MYTKY) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.33, compared to a current price of $8.36 — trading 258.8% above its estimated fair value. The current ROC % is 19.03% and 319.2% above the Telecommunication Services industry median of 4.54. Magyar Telekom Telecommunications' overall GF Score™ is 68/100 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 Magyar Telekom Telecommunications (MYTKY), the current ROC % is 19.03% 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 Magyar Telekom Telecommunications (MYTKY) Overvalued in 2026?
Based on GuruFocus' analysis, Magyar Telekom Telecommunications stock appears to be overvalued.
The current stock price of $8.36 is trading 258.8% above its estimated GF Value™ of $2.33.
GuruFocus considers Magyar Telekom Telecommunications to be Significantly Overvalued.
Key valuation signals for MYTKY:
ROC %: 19.03%
GF Value™: $2.33 vs. price of $8.36 (258.8% above fair value)
Industry Position: 319.2% above the Telecommunication Services median
No single metric tells the full story. See the MYTKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magyar Telekom Telecommunications Business Description
Magyar Telekom Telecommunications PLC, formerly known as Magyar Telekom PLC, is a telecommunications company that operates in two segments: MT-Hungary and North Macedonia. MT Hungary supplies mobile, information communication, television distribution, and system integration services to both business and residential consumers in Hungary. The North Macedonia segment expands the company's mobile and fixed-line telecommunication services across North Macedonia. The company derives maximum revenue from the MT Hungary segment. Magyar controls the majority share of the Hungarian telecom market and has a footprint in Macedonia, Bulgaria, and Romania. The company receives majority of its revenue from Hungary, while it also has its presence in North Macedonia and Other Countries.
68GF Score
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