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 Nigeria Communications's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 28.68%.
As of today (2026-06-26), MTN Nigeria Communications's WACC % is 10.49%. MTN Nigeria Communications's ROC % is 28.22% (calculated using TTM income statement data).
MTN Nigeria Communications 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.
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 Nigeria Communications's WACC % is 10.49%. MTN Nigeria Communications's ROC % is 28.22% (calculated using TTM income statement data).
MTN Nigeria Communications 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.
* 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.
MTN Nigeria Communications (NSA:MTNN) has a ROC % of 28.68% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on MTN Nigeria Communications and its competitors.
Is MTN Nigeria Communications' ROC % too high?
MTN Nigeria Communications' current ROC % is 28.68%. The Telecommunication Services industry median ROC % is 4.54. MTN Nigeria Communications' value of 28.68% is 532.4% above this industry median. Overall, MTN Nigeria Communications has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MTN Nigeria Communications' ROC % compare to TMUS and VZ?
MTN Nigeria Communications' ROC % of 28.68% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.54. MTN Nigeria Communications' value of 28.68% is 532.4% 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. MTN Nigeria Communications's current ROC % of 28.68% is 532.4% 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 MTN Nigeria Communications 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 Nigeria Communications's current ROC % is 28.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MTN Nigeria Communications stock overvalued right now?
Based on GuruFocus' analysis, MTN Nigeria Communications (NSA:MTNN) is currently considered Significantly Overvalued. The stock's GF Value™ is ₦612.30, compared to a current price of ₦830.00 — trading 35.6% above its estimated fair value. The current ROC % is 28.68% and 532.4% above the Telecommunication Services industry median of 4.54. MTN Nigeria Communications' overall GF Score™ is 85/100 with 3 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 Nigeria Communications (NSA:MTNN), the current ROC % is 28.68% 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 MTN Nigeria Communications (NSA:MTNN) Overvalued in 2026?
Based on GuruFocus' analysis, MTN Nigeria Communications stock appears to be overvalued.
The current stock price of ₦830.00 is trading 35.6% above its estimated GF Value™ of ₦612.30.
GuruFocus considers MTN Nigeria Communications to be Significantly Overvalued.
Key valuation signals for NSA:MTNN:
ROC %: 28.68%
GF Value™: ₦612.30 vs. price of ₦830.00 (35.6% above fair value)
Industry Position: 532.4% above the Telecommunication Services median
No single metric tells the full story. See the NSA:MTNN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MTN Nigeria Communications PLC is a provider of communications services. The principal activities of the company are the provision of broadband fixed wireless access service, mobile broadband solutions, and fibre-to-the-home connectivity. The group operates in three reportable segments, namely, Consumer Business Unit (CBU), which consists of subscribers sitting in value propositions and tariff plans for Youth, High Value, and Mass segments, Enterprise Business Unit (EBU), which consists of small and medium organizations to whom the services are provided, and Wholesale Business Unit (WBU), which serves customers who buy MTN telecom products. The majority of the revenue is generated from the CBU segment.
85GF Score
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