Megaport (ASX:MP1) ROCE %: -6.56% (As of Dec. 2025)


ASX:MP1 Megaport Ltd ASX:MP1
75 GF Score
Price A$20.95
GF Value A$16.67
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Megaport ROCE %?

Megaport ASX:MP1 +0.43% 75 ROCE % is -6.56% as of Dec. 2025. GuruFocus rates ASX:MP1 with a GF Score™ of 75/100 and a GF Value™ of A$16.67 (Modestly Overvalued). The stock has 5 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Megaport's annualized ROCE % for the quarter that ended in Dec. 2025 was -6.56%.

Megaport  (ASX:MP1) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Megaport ROCE % Related Terms

Megaport ROCE % Historical Data

* Premium members only.

The historical data trend for Megaport's ROCE % 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.

Megaport ROCE % Chart

Megaport Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -29.26 -20.94 -5.22 1.87 0.31

Megaport Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.21 3.40 -0.36 0.94 -6.56
ASX:MP1
75GF Score
Megaport Ltd ASX:MP1
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Megaport ROCE % Calculation

Megaport's annualized ROCE % for the fiscal year that ended in Jun. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=0.597/( ( (222.658 - 45.723) + (260.204 - 57.173) )/ 2 )
=0.597/( (176.935+203.031)/ 2 )
=0.597/189.983
=0.31 %

Megaport's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=-32.506/( ( (260.204 - 57.173) + (935.038 - 147.069) )/ 2 )
=-32.506/( ( 203.031 + 787.969 )/ 2 )
=-32.506/495.5
=-6.56 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of -6.56% mean?
Megaport (ASX:MP1) has a ROCE % of -6.56% as of Dec. 2025.
Is Megaport's ROCE % too high?
Megaport's current ROCE % is -6.56%. Overall, Megaport has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Megaport's ROCE % compare to MSFT and ORCL?
Megaport's ROCE % of -6.56% can be compared against companies in the Software industry. The industry median ROCE % is 5.27. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.27, based on 2,711 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Megaport's current ROCE % is -6.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Megaport stock overvalued right now?
Based on GuruFocus' analysis, Megaport (ASX:MP1) is currently considered Modestly Overvalued. The stock's GF Value™ is A$16.67, compared to a current price of A$20.95 — trading 25.7% above its estimated fair value. The current ROCE % is -6.56%. Megaport's overall GF Score™ is 75/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Megaport (ASX:MP1), the current ROCE % is -6.56% 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 Megaport (ASX:MP1) Overvalued in 2026?

Based on GuruFocus' analysis, Megaport stock appears to be overvalued. The current stock price of A$20.95 is trading 25.7% above its estimated GF Value™ of A$16.67. GuruFocus considers Megaport to be Modestly Overvalued.

Key valuation signals for ASX:MP1:

  • ROCE %: -6.56%
  • GF Value™: A$16.67 vs. price of A$20.95 (25.7% above fair value)
  • GF Score™: 75/100 with 5 warning signs

No single metric tells the full story. See the ASX:MP1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Megaport Business Description

Other Exchanges MGPPF:USA92J:Germany
Address 825 Ann Street, Level 3, Fortitude Valley, Brisbane, QLD, AUS, 4006
Megaport is one of the world's largest software-defined network service providers, enabling around 3,000 enterprise customers to connect to over 1,000 data centers throughout the world. Megaport's services mostly revolve around enabling enterprises to connect to cloud service providers, like Amazon Web Services, but it also offers services to enable businesses to connect across multiple data centers, to internet exchanges, and to buy compute capacity.
75GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$20.95
Price
A$16.67
GF Value