ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Etihad GO Telecom Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 32.69%.
As of today (2026-07-06), Etihad GO Telecom Co's WACC % is 12.15%. Etihad GO Telecom Co's ROIC % is 34.28% (calculated using TTM income statement data).
Etihad GO Telecom Co 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.
Etihad GO Telecom Co (SAU:7040) 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, Etihad GO Telecom Co's WACC % is 12.15%. Etihad GO Telecom Co's ROIC % is 34.28% (calculated using TTM income statement data).
Etihad GO Telecom Co 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 %, 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.
* 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 Telecom Services subindustry, Etihad GO Telecom Co'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.
Etihad GO Telecom Co ROIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Etihad GO Telecom Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Etihad GO Telecom Co'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.
Etihad GO Telecom Co (SAU:7040) has a ROIC % of 32.69% 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 Etihad GO Telecom Co and its competitors.
Is Etihad GO Telecom Co's ROIC % too high?
Etihad GO Telecom Co's current ROIC % is 32.69%. The Telecommunication Services industry median ROIC % is 4.53. Etihad GO Telecom Co's value of 32.69% is 621.6% above this industry median. Overall, Etihad GO Telecom Co has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Etihad GO Telecom Co's ROIC % compare to TMUS and VZ?
Etihad GO Telecom Co's ROIC % of 32.69% can be compared against companies in the Telecommunication Services industry. The industry median ROIC % is 4.53. Etihad GO Telecom Co's value of 32.69% is 621.6% 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 ROIC % for a Telecommunication Services company?
The median ROIC % among Telecommunication Services companies is 4.53, based on 361 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. Etihad GO Telecom Co's current ROIC % of 32.69% is 621.6% 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 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 Etihad GO Telecom Co and its competitors. For the Telecommunication Services industry, the median ROIC % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Etihad GO Telecom Co's current ROIC % is 32.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Etihad GO Telecom Co stock overvalued right now?
Based on GuruFocus' analysis, Etihad GO Telecom Co (SAU:7040) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼134.14, compared to a current price of ﷼88.30 — trading 34.2% below its estimated fair value. The current ROIC % is 32.69% and 621.6% above the Telecommunication Services industry median of 4.53. Etihad GO Telecom Co's overall GF Score™ is 85/100 with 1 warning sign 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 Etihad GO Telecom Co (SAU:7040), the current ROIC % is 32.69% 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 Etihad GO Telecom Co (SAU:7040) Overvalued in 2026?
Based on GuruFocus' analysis, Etihad GO Telecom Co stock appears to be undervalued.
The current stock price of ﷼88.30 is trading 34.2% below its estimated GF Value™ of ﷼134.14.
GuruFocus considers Etihad GO Telecom Co to be Significantly Undervalued.
Key valuation signals for SAU:7040:
ROIC %: 32.69%
GF Value™: ﷼134.14 vs. price of ﷼88.30 (34.2% below fair value)
Industry Position: 621.6% above the Telecommunication Services median
No single metric tells the full story. See the SAU:7040 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Etihad GO Telecom Co offers a variety of fixed and wireless telecommunications services, such as voice services, data services, broadband internet services, internet telephony services, international gateway services, and landline phone services for individuals, households, and businesses. Its segments are Data services, Voice, Unallocated, and Systems Analysis, Application Design and Development Services. The company generates majority of revenue from Data services comprise of internet broadband services provided to business-to-business (B2B) and business-to-consumer (B2C). The company has presence in Kingdom of Saudi Arabia, and Outside Saudi Arabia. It generates majority of revenue from Kingdom of Saudi Arabia.
85GF Score
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