ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Gray Media's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 2.33%.
As of today (2026-06-27), Gray Media's WACC % is 8.14%. Gray Media's ROIC % is 3.28% (calculated using TTM income statement data).
Gray Media earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Gray Media (NYSE:GTN) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Gray Media's WACC % is 8.14%. Gray Media's ROIC % is 3.28% (calculated using TTM income statement data).
Gray Media 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 %, ROIC % 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.
Gray Media ROIC % Related Terms
Gray Media ROIC % Historical Data
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The historical data trend for Gray Media's ROIC % 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.
For the Broadcasting subindustry, Gray Media's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Gray Media ROIC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Gray Media's ROIC % distribution charts can be found below:
* The bar in red indicates where Gray Media's ROIC % falls into.
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.
Gray Media (GTN) has a ROIC % of 2.33% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Gray Media and its competitors.
Is Gray Media's ROIC % too high?
Gray Media's current ROIC % is 2.33%. The Media - Diversified industry median ROIC % is 1.41. Gray Media's value of 2.33% is 65.8% above this industry median. Overall, Gray Media has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Gray Media's ROIC % compare to SSP and FUBO?
Gray Media's ROIC % of 2.33% can be compared against companies in the Media - Diversified industry. The industry median ROIC % is 1.41. Gray Media's value of 2.33% is 65.8% 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 ROIC % for a Media - Diversified company?
The median ROIC % among Media - Diversified companies is 1.41, based on 1,016 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gray Media's current ROIC % of 2.33% is 65.8% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Gray Media and its competitors. For the Media - Diversified industry, the median ROIC % is 1.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gray Media's current ROIC % is 2.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gray Media stock overvalued right now?
Based on GuruFocus' analysis, Gray Media (GTN) is currently considered Fairly Valued. The stock's GF Value™ is $4.19, compared to a current price of $3.80 — trading 9.3% below its estimated fair value. The current ROIC % is 2.33% and 65.8% above the Media - Diversified industry median of 1.41. Gray Media's overall GF Score™ is 66/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Gray Media (GTN), the current ROIC % is 2.33% 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 Gray Media (GTN) Overvalued in 2026?
Based on GuruFocus' analysis, Gray Media stock appears to be undervalued.
The current stock price of $3.80 is trading 9.3% below its estimated GF Value™ of $4.19.
GuruFocus considers Gray Media to be Fairly Valued.
Key valuation signals for GTN:
ROIC %: 2.33%
GF Value™: $4.19 vs. price of $3.80 (9.3% below fair value)
Industry Position: 65.8% above the Media - Diversified median
No single metric tells the full story. See the GTN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gray Media Inc is a multimedia company. The company owns and operates local television stations and digital assets. It also owns Gray Digital Media, a full-service digital agency offering national and local clients digital marketing strategies with digital products and services. Its additional media properties include video production companies Raycom Sports, Tupelo Media Group, and PowerNation Studios, and studio production facilities Assembly Atlanta and Third Rail Studios. The company's segments include Broadcasting and Production Companies. The majority of revenue is derived from broadcast and digital advertising and from retransmission consent fees.
66GF Score
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