TDS (Telephone and Data Systems) ROCE %: 12.17% (As of Mar. 2026)


TDS Telephone and Data Systems Inc TDS
64 GF Score
Price $37.60
GF Value $32.86
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Telephone and Data Systems ROCE %?

Telephone and Data Systems TDS +0.12% 64 ROCE % is 12.17% as of Mar. 2026. GuruFocus rates TDS with a GF Score™ of 64/100 and a GF Value™ of $32.86 (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. Telephone and Data Systems's annualized ROCE % for the quarter that ended in Mar. 2026 was 12.17%.

Telephone and Data Systems  (NYSE:TDS) 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.

Telephone and Data Systems ROCE % Related Terms

Telephone and Data Systems ROCE % Historical Data

* Premium members only.

The historical data trend for Telephone and Data Systems'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.

Telephone and Data Systems ROCE % Chart

Telephone and Data Systems Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.83 2.36 -3.89 0.04 1.96

Telephone and Data Systems Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 0.37 2.90 2.08 4.91 12.17
TDS
64GF Score
Telephone and Data Systems Inc TDS
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Telephone and Data Systems ROCE % Calculation

Telephone and Data Systems's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=201.63/( ( (13682.232 - 1089.694) + (8398.303 - 440.311) )/ 2 )
=201.63/( (12592.538+7957.992)/ 2 )
=201.63/10275.265
=1.96 %

Telephone and Data Systems's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=956.624/( ( (8398.303 - 440.311) + (8211.327 - 443.675) )/ 2 )
=956.624/( ( 7957.992 + 7767.652 )/ 2 )
=956.624/7862.822
=12.17 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) 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 12.17% mean?
Telephone and Data Systems (TDS) has a ROCE % of 12.17% as of Mar. 2026.
Is Telephone and Data Systems' ROCE % too high?
Telephone and Data Systems' current ROCE % is 12.17%. The Telecommunication Services industry median ROCE % is 7.72. Telephone and Data Systems' value of 12.17% is 57.6% above this industry median. Overall, Telephone and Data Systems has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telephone and Data Systems' ROCE % compare to AD and LBTYA?
Telephone and Data Systems' ROCE % of 12.17% can be compared against companies in the Telecommunication Services industry. The industry median ROCE % is 7.72. Telephone and Data Systems' value of 12.17% is 57.6% 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 ROCE % for a Telecommunication Services company?
The median ROCE % among Telecommunication Services companies is 7.72, based on 356 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. Telephone and Data Systems's current ROCE % of 12.17% is 57.6% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Telecommunication Services industry, the median ROCE % is 7.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telephone and Data Systems's current ROCE % is 12.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telephone and Data Systems stock overvalued right now?
Based on GuruFocus' analysis, Telephone and Data Systems (TDS) is currently considered Modestly Overvalued. The stock's GF Value™ is $32.86, compared to a current price of $37.60 — trading 14.4% above its estimated fair value. The current ROCE % is 12.17% and 57.6% above the Telecommunication Services industry median of 7.72. Telephone and Data Systems' overall GF Score™ is 64/100 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 Telephone and Data Systems (TDS), the current ROCE % is 12.17% 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 Telephone and Data Systems (TDS) Overvalued in 2026?

Based on GuruFocus' analysis, Telephone and Data Systems stock appears to be overvalued. The current stock price of $37.60 is trading 14.4% above its estimated GF Value™ of $32.86. GuruFocus considers Telephone and Data Systems to be Modestly Overvalued.

Key valuation signals for TDS:

  • ROCE %: 12.17%
  • GF Value™: $32.86 vs. price of $37.60 (14.4% above fair value)
  • GF Score™: 64/100 with 5 warning signs
  • Industry Position: 57.6% above the Telecommunication Services median

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

Telephone and Data Systems Business Description

Other Exchanges TDSpU.PFD:USA
Address 30 North LaSalle Street, Suite 4000, Chicago, IL, USA, 60602
Telephone and Data Systems Inc is a diversified telecommunications operator that provides communications services to customers through broadband, video, voice, and wireless connections. The company has two reportable segments: TDS Telecom and Array. The majority of its revenue is generated from the TDS Telecom segment, which generates revenue by providing broadband, video, voice, and wireless services. The Array segment generates its revenue mainly by leasing tower space on Array-owned towers to customers.
64GF Score

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

$37.60
Price
$32.86
GF Value