ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. PT Indoritel Makmur Internasional Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.02%.
PT Indoritel Makmur Internasional Tbk (ISX:DNET) 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, PT Indoritel Makmur Internasional Tbk's WACC % is 2.89%. PT Indoritel Makmur Internasional Tbk's ROIC % is 1.38% (calculated using TTM income statement data).
PT Indoritel Makmur Internasional Tbk 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.
PT Indoritel Makmur Internasional Tbk ROIC % Related Terms
PT Indoritel Makmur Internasional Tbk ROIC % 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.
PT Indoritel Makmur Internasional Tbk ROIC % Chart
For the Telecom Services subindustry, PT Indoritel Makmur Internasional Tbk'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.
PT Indoritel Makmur Internasional Tbk ROIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, PT Indoritel Makmur Internasional Tbk's ROIC % distribution charts can be found below:
* The bar in red indicates where PT Indoritel Makmur Internasional Tbk'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.
PT Indoritel Makmur Internasional Tbk (ISX:DNET) has a ROIC % of 1.02% 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 PT Indoritel Makmur Internasional Tbk and its competitors.
Is PT Indoritel Makmur Internasional Tbk's ROIC % too high?
PT Indoritel Makmur Internasional Tbk's current ROIC % is 1.02%. The Telecommunication Services industry median ROIC % is 4.54. PT Indoritel Makmur Internasional Tbk's value of 1.02% is 77.5% below this industry median. Overall, PT Indoritel Makmur Internasional Tbk has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does PT Indoritel Makmur Internasional Tbk's ROIC % compare to TMUS and VZ?
PT Indoritel Makmur Internasional Tbk's ROIC % of 1.02% can be compared against companies in the Telecommunication Services industry. The industry median ROIC % is 4.54. PT Indoritel Makmur Internasional Tbk's value of 1.02% is 77.5% below 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 Telecommunication Services company?
The median ROIC % among Telecommunication Services companies is 4.54, based on 366 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. PT Indoritel Makmur Internasional Tbk's current ROIC % of 1.02% is 77.5% below 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 PT Indoritel Makmur Internasional Tbk and its competitors. For the Telecommunication Services industry, the median ROIC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Indoritel Makmur Internasional Tbk's current ROIC % is 1.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Indoritel Makmur Internasional Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Indoritel Makmur Internasional Tbk (ISX:DNET) is currently considered Fairly Valued. The stock's GF Value™ is Rp9,993.07, compared to a current price of Rp10,300.00 — trading 3.1% above its estimated fair value. The current ROIC % is 1.02% and 77.5% below the Telecommunication Services industry median of 4.54. PT Indoritel Makmur Internasional Tbk's overall GF Score™ is 84/100 with 5 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 PT Indoritel Makmur Internasional Tbk (ISX:DNET), the current ROIC % is 1.02% 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 PT Indoritel Makmur Internasional Tbk (ISX:DNET) Overvalued in 2026?
Based on GuruFocus' analysis, PT Indoritel Makmur Internasional Tbk stock appears to be overvalued.
The current stock price of Rp10,300.00 is trading 3.1% above its estimated GF Value™ of Rp9,993.07.
GuruFocus considers PT Indoritel Makmur Internasional Tbk to be Fairly Valued.
Key valuation signals for ISX:DNET:
ROIC %: 1.02%
GF Value™: Rp9,993.07 vs. price of Rp10,300.00 (3.1% above fair value)
Industry Position: 77.5% below the Telecommunication Services median
No single metric tells the full story. See the ISX:DNET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Indoritel Makmur Internasional Tbk Business Description
PT Indoritel Makmur Internasional Tbk is an investment holding company. The company, through its subsidiaries, is engaged in providing infrastructure through fiber optic media and serving telecommunication services ranging from data communication to interactive video, managing SDWAN services, and a variety of other Internet of Things (IoT) derivatives. Its segments are the Corporate segment, the Retail segment, and Others. It generates the majority of revenue from the Corporate segment. The Corporate Business Segment provides fiber-optic-based telecommunications data connection service products for business customers, such as Last Mile Solution, Fiberization, IP Transit, IEPL, MPLS, and DWDM, to other telecommunications operators and international customers.
84GF Score
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