ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Vodacom Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 16.46%.
As of today (2026-06-27), Vodacom Group's WACC % is 12.11%. Vodacom Group's ROIC % is 15.05% (calculated using TTM income statement data).
Vodacom Group 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.
Vodacom Group (OTCPK:VODAF) 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, Vodacom Group's WACC % is 12.11%. Vodacom Group's ROIC % is 15.05% (calculated using TTM income statement data).
Vodacom Group 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.
Vodacom Group ROIC % Related Terms
Vodacom Group ROIC % Historical Data
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The historical data trend for Vodacom Group'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 Telecom Services subindustry, Vodacom Group'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.
Vodacom Group ROIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Vodacom Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Vodacom Group's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Vodacom Group (VODAF) has a ROIC % of 16.46% 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 Vodacom Group and its competitors.
Is Vodacom Group's ROIC % too high?
Vodacom Group's current ROIC % is 16.46%. The Telecommunication Services industry median ROIC % is 4.54. Vodacom Group's value of 16.46% is 263% above this industry median. Overall, Vodacom Group has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vodacom Group's ROIC % compare to TMUS and VZ?
Vodacom Group's ROIC % of 16.46% can be compared against companies in the Telecommunication Services industry. The industry median ROIC % is 4.54. Vodacom Group's value of 16.46% is 263% 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 4.54, 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. Vodacom Group's current ROIC % of 16.46% is 263% 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 Vodacom Group 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. Vodacom Group's current ROIC % is 16.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vodacom Group stock overvalued right now?
Based on GuruFocus' analysis, Vodacom Group (VODAF) is currently considered Fairly Valued. The stock's GF Value™ is $8.82, compared to a current price of $8.98 — trading 1.8% above its estimated fair value. The current ROIC % is 16.46% and 263% above the Telecommunication Services industry median of 4.54. Vodacom Group's overall GF Score™ is 77/100 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 Vodacom Group (VODAF), the current ROIC % is 16.46% 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 Vodacom Group (VODAF) Overvalued in 2026?
Based on GuruFocus' analysis, Vodacom Group stock appears to be overvalued.
The current stock price of $8.98 is trading 1.8% above its estimated GF Value™ of $8.82.
GuruFocus considers Vodacom Group to be Fairly Valued.
Key valuation signals for VODAF:
ROIC %: 16.46%
GF Value™: $8.82 vs. price of $8.98 (1.8% above fair value)
Industry Position: 263% above the Telecommunication Services median
No single metric tells the full story. See the VODAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vodacom Group Ltd is a telecommunications provider. It is engaged in the provision of a wide range of communications products and services including but not limited to voice, messaging, converged services, broadband, data connectivity, mobile financial services and other value added services. Its segments includes South Africa comprises the information relating to the South African-based cellular network and other business segments. Egypt comprises the information relating to the Egyptian-based cellular network and other business segments. International comprises the segment information relating to the non-South African-based cellular networks in Tanzania, Mozambique, Lesotho and the Democratic Republic of Congo. It generates majority of revenue from South Africa.
77GF Score
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